Exercise 23-12 Condensed financial data of Stellar Company for 2017 and 2016 are present STELLAR COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 2017 $1,780 1,750 1,590 1,940 (1,190) 1,300 $7,170 2016 $1,120 1,300 1,940 1,670 (1,140 ) 1,400 $6,290 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 190 1,380 1,920 2,460 $7,170 $880 250 1,570 1,730 1,860 $6,290 STELLAR 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 $7,040 4,800 2,240 910 1,330 80 1,410 550 860 260 $600 Additional information: During the year, $120 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).) STELLAR COMPANY Statement of Cash Flows (Direct Method)