Required: Prepare a cash flow statement, in good form, using the indirect method for operating activities. Orion Company's comparative balance sheets for 2016 and 2017 are presented below.

Orion Company
Balance Sheets
	December 31		Increase
	2017	2016	(Decrease)
Assets
Cash	337,000	246,000	91,000
Accounts receivable, net	420,000	280,000	140,000
Marketable securities	15,000	0	15,000
Inventories	520,000	440,000	80,000
Land	650,000	400,000	250,000
Plant and equipment	1,160,000	1,266,000	(106,000)
Less: Accumulated depreciation	(180,000)	(200,000)	20,000
Total assets	2,922,000	2,432,000	490,000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable	660,000	500,000	160,000
Accrued wages	540,000	520,000	20,000
Long-term bonds (due 7/1/2023)	260,000	360,000	(100,000)
Total liabilities	1,460,000	1,380,000	80,000
Stockholders' equity:
Common stock and APIC	966,000	760,000	206,000
Retained earnings	496,000	292,000	204,000
Total stockholders' equity	1,462,000	1,052,000	410,000
Total liabilities and stockholders' equity	2,922,000	2,432,000	490,000

Orion Company
Income Statement for the Year Ended December 31, 2017
Sales	1,600,000
Gain on sale of marketable securities	2,000
Gain on extinguishment of debt	44,000
Total revenue and gains	1,646,000
Expenses
Cost of goods sold	720,000
Personnel costs	386,000
Depreciation	40,000
Loss on sale of equipment	8,000
Interest	32,000
Miscellaneous	16,000
Total expenses	1,202,000
Income before income taxes	444,000
Income tax expense	200,000
Net income	244,000

1. On Jan 11, 2017, Orion purchased land for $170,000 cash

2. On Jan 23, 2017, Orion extinguished long-term bonds with a face value of $100,000

3. On Feb 8, 2017, Orion issued 8,400 shares of common stock for cash. The stock was issued at $15 per share.

4. Orion purchased marketable securities for $30,000 on Mar 15, 2017; one-half of the securities were later sold on Dec 3, 2017

5. On June 9, 2017, Orion issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction

6. On July 1, 2017, Orion declared and paid a $40,000 cash dividend

7. On Oct 18, 2017, Orion sold equipment costing $106,000, with a booked value of $46,000, for $38,000 cash