Exercise 23-12 Condensed financial data of Bramble Company for 2017 and 2016 are presented below. BRAMBLE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,810 $1,120 Receivables 1,790 1,330 Inventory 1,570 1,940 Plant assets 1,870 1,740 Accumulated depreciation (1,230 ) (1,150 ) Long-term investments (held-to-maturity) 1,300 1,440 $7,110 $6,420 Accounts payable $1,220 $910 Accrued liabilities 200 260 Bonds payable 1,370 1,550 Common stock 1,860 1,740 Retained earnings 2,460 1,960 $7,110 $6,420 BRAMBLE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,810 Cost of goods sold 4,680 Gross margin 2,130 Selling and administrative expenses 920 Income from operations 1,210 Other revenues and gains Gain on sale of investments 80 Income before tax 1,290 Income tax expense 530 Net income 760 Cash dividends 260 Income retained in business $500 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.