Condensed financial data of Sarasota Company for 2017 and 2016 are presented below SARASOTA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 $1,830 1,710 1,590 1,890 2016 $1,180 1,320 1,920 1,710 Cash Inventory Plant assets (1,220) 1,190) investments (held-to-maturity) 1,320 $7,120 Long-term 1,440 $6,380 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,190 210 1,400 1,940 2,380 $890 260 1,580 1,660 1,990 $7,1206.380 SARASOTA 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 $6,720 4,680 2,040 920 1,120 Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 80 1,200 550 650 260 $390 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).) SARASOTA COMPANY Statement of Cash Flows Direct