Additional information: 1. Operating expenses include depreciation expense of $68,922. 2. Land was sold for cash at book value. 3. Cash dividends of $19,692 were paid. 4. Net income for 2017 was $60,716. 5. Equipment was purchased for $150,972 cash. In addition, equipment costing $36,102 with a book value of $16,410 was sold for $13,128 cash. 6. 65,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $65,640. Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e. g. -15,000 or in parenthesis e. g. (15,000).)

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)