4. Matthauson Company has the following comparative balance sheet data available: (2 points)

	12/31/2017	12/31/2016
Cash	$30,000	$80,000
Accounts receivable, net	160,000	100,000
Inventory	100,000	70,000
Prepaid rent	20,000	10,000
Total current assets	$310,000	$260,000
Equipment	$400,000	$200,000
Accumulated depreciation	(60,000)	(50,000)
Total Assets	$650,000	$410,000
Accounts payable	$50,000	$40,000
Salaries payable	40,000	40,000
Bonds payable	0	50,000
Common stock, $10 par	300,000	100,000
Additional paid-in capital	50,000	0
Retained earnings	210,000	180,000
Total liabilities & stockholders' equity	$650,000	$410,000

Additional information:

The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31, 2017.

Dividends declared and paid in 2017, $70,000.

Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.

New equipment was purchased for cash.

No common stock was retired during 2017.

The company also reports the following income statement for the year ending December 31, 2017:

Sales		$1,000,000
Expenses:
Cost of goods sold	600,000
Salaries expense	200,000
Rent expense	40,000
Depreciation expense	20,000
Interest expense	3,000
Loss on sale of equipment	7,000
Income tax expense	30,000	900,000
Net income		$100,000

Using the direct method, prepare the statement of cash flows for the year ending December 31, 2017.