Refer to Satu Company's financial statements and related information in Problem 16-6B.

Required
Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method.

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SATU COMPANY Comparative Balance Sheets December 31, 2017 and 2016 Accounts receivable Accum. depreciation-Equipment Liabilities and Equity Income taxes payable S305,689 $241,080 6 2,100 4 Common stock, $5 par value Paid-in capital in excess of par, common stock Total liabilities and equity S305,689 $241,080 SATU COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $750,800 269,200 481,600 15,700 173,933 189,633 291,967 89,200 $202,767 Income before taxes Net income