CARLA VISTA LTD. Balance Sheet December 31 Assets 2017 2016 Cash $90,350 $47,700 Accounts receivable 75,300 45,000 Inventory 128,900 95,300 Prepaid expenses 37,600 24,200 Long-term investments 127,100 113,100 Property, plant, and equipment 266,100 243,000 Accumulated depreciation (49,200) (51,900) Total assets $676,150 $516,400 Liabilities and Shareholders' Equity Accounts payable $92,200 $77,300 Accrued expenses payable 12,400 6,200 Notes payable 105,300 151,500 Common shares 225,300 170,300 Retained earnings 240,950 111,100 Total liabilities and shareholders' equity $676,150 $516,400 CARLA VISTA LTD. Income Statement Year Ended December 31, 2017 Sales $492,100 Cost of goods sold 187,600 Gross profit 304 500 CARLA VISTA LTD. Income Statement Year Ended December 31, 2017 Sales $492,100 Cost of goods sold 187,600 Gross profit 304,500 Operating expenses $59,500 Depreciation expense 44,500 Loss on sale of equipment 9,240 113,240 Profit from operations 191,260 Other expenses Interest expense 5,080 Profit before income tax 186,180 Income tax expense 43,700 Profit $ 142,480 Additional information: 1. New equipment costing $81,000 was purchased for $21,100 cash and a $59,900 note payable. 2. Equipment with an original cost of $57,900 was sold at a loss of $9,240. 3. Notes payable matured during the year and were repaid. 4. A long-term investment was acquired for cash. 5. Accounts payable relate only to merchandise creditors. 6. Accrued expenses payable and prepaid expenses relate to operating expenses. Prepare the operating section of the cash flow statement using the direct method. (Show amounts that narenthesis en (15.000)) Cash Flow Statement (Partial)-Direct Method ta