m PR 16-2A Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows: Dec 31, 2016 Dec 31, 2015 Assets Cash $ 146,600 $ 179,800 Accounts receivable (net) 224,600 242,000 Merchandise inventory 321,600 299,200 Prepaid expenses 13,400 9,600 Equipment.. 655,000 537,000 Accumulated depreciation-equipment (170,800) (132,200) Total assets .... $1,190,400 $1,135,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable.... Common stock, 510 par.. Paid-in capital: Excess of issue price over par-common stock Retained earnings..... Total liabilities and stockholders' equity. $ 250,200 0 74,000 470,000 396,200 $1,190,400 $ 237,600 336,000 24,000 320,000 217,800 $1,135,400 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows: a. Net income, $332,000 b. Depreciation reported on the income statement, $83,400 c. Equipment was purchased at a cost of $162,800 and fully depreciated equipment cost- ing $44,800 was discarded, with no salvage realized. d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $153,600 Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Assume that Del Ray Enterprises Inc. includes dividend payments in cash flow from financing activities