Condensed financial data of Flounder Company for 2017 and 2016 are presented below. FLOUNDER COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash $1,770 Receivables 1,780 Inventory 1,570 Plant assets 1,870 Accumulated depreciation (1,210) Long-term investments (held-to-maturity) 1,290 $7,070 2016 $1,170 1,300 1,880 1,710 (1,190 ) 1,430 $6,300 $900 250 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,200 200 1,430 1,860 2,380 $7,070 1,580 1,730 1,840 $6,300 $6,820 4,640 2,180 910 1,270 FLOUNDER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 80 1,350 550 800 260 $540 Additional information: During the year, $80 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 sect or in parenthesis e.g. (15,000).) FLOUNDER COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Direct Method) Cash Flows from Operating Activities Cash Receipts from Customers Cash Paid for Merchandise Cash Paid for Selling/Administrative Expenses Cash Paid for Income Taxes Net Cash Provided by Operating Activities v Cash Flows from Investing Activities Purchase of Plant Assets Sale of Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Payable Issuance of Capital Stock Payment of Cash Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Issuance of common stock for Plant Assets