Prepare a statement of cash flowsindirect method.

(LO 2), AP

The comparative balance sheets for Spicer Company as of December 31 are presented below.

SPICER COMPANY Comparative Balance Sheets December 31
Assets	2017	2016
Cash	$ 68,000?	$ 45,000?
Accounts receivable	50,000?	58,000?
Inventory	151,450?	142,000?
Prepaid expenses	15,280?	21,000?
Land	145,000?	130,000?
Buildings	200,000?	200,000?
Accumulated depreciationbuildings	(60,000)	(40,000)
Equipment	225,000?	155,000?
Accumulated depreciationequipment	(45,000)	(35,000)
Total	$749,730?	$676,000?
Liabilities and Stockholders' Equity
Accounts payable	$ 44,730?	$ 36,000?
Bonds payable	300,000?	300,000?
Common stock, $1 par	200,000?	160,000?
Retained earnings	205,000?	180,000?
Total	$749,730?	$676,000?

Additional information:

1.Operating expenses include depreciation expense of $42,000.

2.Land was sold for cash at book value.

3.Cash dividends of $12,000 were paid.

4.Net income for 2017 was $37,000.

5.Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash.

6.40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000.

Instructions

Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

Net cash providedoper. act. $94,000