Condensed financial data of Ayayai Company for 2017 and 2016 are presented below.

Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows using the direct method.

AYAYAI COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash 1,790 $1,150 Receivables 1,780 1,330 1,620 Inventory 1,890 Plant assets 1,930 1,700 Accumulated depreciation (1,200) (1,180) Long-term investments (held-to-maturity) 1,420 1,310 $7,230 $6,310 $920 Accounts payable $1,210 210 Accrued liabilities 240 Bonds payable 1,370 1,530 Common stock 1,670 1,860 Retained earnings 1,950 2,580 $6,310 $7,230 AYAYAI COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,970 Cost of goods sold 4,680 Gross margin 2,290 Selling and administrative expenses 1,350 Income from operations Other revenues and gains Gain on sale of investments 80 Income before tax 1,430 Income tax expense 540 Net income 890 Cash dividends 260 $630 Income retained in business