A comparative balance sheet for Barker Corporation is presented below.

December $31$

Assets $20172016$

Cash $ $72,870$ $ $22,000$

Investments $010,000$

Accounts receivable $83,73067,860$

Prepaid expenses $181,730190,860$

Land $72,730111,860$

Equipment $261,730201,860$

Accumulated Depreciation$-$Equipment $(70,730)(43,860)$

Total $$602,060$ $$560,580$

Liabilities and Stockholders' Equity

Accounts payable $ $35,730$ $ $48,860$

Bonds payable $150,000200,000$

Common stock $($$$1$ par$)214,000164,000$

Retained earnings $202,330147,720$

Total $$602,060$ $$560,580$

Additional information:

$1.$ Barker$$s investment in securities of PMCS Inc. became worthless during $2017$ when

PMCS Inc. declared bankruptcy. Barker recorded a $$10,000$ loss on the investment.

$2.$ No other gains or losses were recorded during the year.

$3.$ Cash dividends of $$63,850$ were declared and paid during $2017.$

$4.$ HINT: You will need to calculate Net Income using $($i$)$ the comparative balances in the

Retained earnings account, and $($ii$)$ the identity for the Statement of Retained Earnings

discussed in the Chapter $3$ course notes. Assume that Barker did not record any prior

period adjustments to retained earnings during $2017.$

REQUIRED: Prepare Barker$$s Statement of Cash Flows for $2017$ using the indirect method. Assume that the land was sold for its book value $($i$.$e$.,$ no gain or loss on the sale$).$

The write$-$off of worthless securities does not impact cash. As such, it will only be reflected in the reconciliation of Net Income to Operating Cash Flows.