Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14-1, 14-3, 14-4

The comparative balance sheets and an income statement for Benson Corporation follow:

Balance Sheets As of December 31
	Year 2				Year 1
Assets
Cash	$	75,086			$	40,170
Accounts receivable		27,355				20,060
Merchandise inventory		157,829				173,610
Prepaid rent		2,390				4,780
Equipment		251,220				288,390
Accumulated depreciation		(141,730	)			(237,250	)
Land		190,360				78,460
Total assets	$	562,510			$	368,220
Liabilities
Accounts payable (inventory)	$	67,414				76,470
Salaries payable		34,102				29,230
Stockholders equity
Common stock, $50 par value		251,000				202,000
Retained earnings		209,994				60,520
Total liabilities and equity	$	562,510			$	368,220

Income Statement For the Year Ended December 31, Year 2
Sales	$	1,497,000
Cost of goods sold		(795,606	)
Gross profit		701,394
Operating expenses
Depreciation expense		(20,450	)
Rent expense		(21,820	)
Salaries expense		(251,010	)
Other operating expenses		(258,640	)
Net income	$	149,474

Other Information

1. Purchased land for $111,900.

2. Purchased new equipment for $97,100.

3. Sold old equipment that cost $134,270 with accumulated depreciation of $115,970 for $18,300 cash.

4. Issued common stock for $49,000.

Required

Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.)