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The following information is available for the AR Corporation:
The following information is available for the AR Corporation:
AR Corporation
Income Statement
For the Year Ended December 31, 2017
Service Revenue $ 900,000
Operating Expenses 700,000
Operating Income $ 200,000
Gain on Investment Sale 10,000
Net income Before Income Taxes $ 210,000
Loss on Sale of Investments 25,000
$ 185,000
Income Tax Expense 90,000
Net Income $ 95,000
The following partial balance sheet information is also available for 2015 and 2014:
2017 2016
Cash $ 655,000 $ 435,000
Accounts Receivable 120,000 100,000
Merchandise Inventory 40,000 50,000
Supplies 10,000 20,000
L.T. Investments 35,000 80,000
Accounts Payable 70,000 60,000
Income Taxes Payable 10,000 15,000
In addition, the following transactions took place during 2017:
1. Common stock was issued for $100,000 cash.
2. Long-term investments were sold for $55,000.
3. Cash dividends of $80,000 were paid.
4. The operating expenses included depreciation of $30,000.
Required: Prepare in good form, a cash flow statement for 2017 using the indirect method for AR Corporation.
