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

CHEYENNE COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

2017 2016

Cash $1,780 $1,130

Receivables 1,740 1290

Inventory 1,610 1870

Plant assets 1,930 1710

Accumulated depreciation (1,210) (1150)

Long-term investments (held-to-maturity) 1,290 1440

$7,140 $6,290

Accounts payable $1,180 $900

Accrued liabilities 190 240

Bonds payable 1,410 1590

Common stock 1,920 1690

Retained earnings 2,440 1870

$7,140 $6,290

CHEYENNE COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue $6,880

Cost of goods sold 4,650

Gross margin 2,230

Selling and administrative expenses 940

Income from operations 1,290

Other revenues and gains

Gain on sale of investments 80

Income before tax 1,370

Income tax expense 540

Net income 830

Cash dividends 260

Income retained in business $570

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. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)