Following is a preparation of a cash flow statement based on the balance sheet, income statement, and additional transaction information provided. Prepare the cash flow statement. Balance Sheet as of December 31, 2016 31/12/15 31/12/16 Difference Assets Current assets: Cash 15,000 46,000 31,000 Increase Accounts receivable 55,000 47,000 -8,000 Decrease Inventory 110,000 144,000 34,000 Increase Prepaid expense 5.000 1,000 4,000 Decrease Total current assets 185,000 238,000 53,000 Financial investments 127,000 115,000 -12,000 Decrease Fixed assets 505,000 715,000 210,000 Increase Accumulated Depreciation -68,000 -103,000 300 Increase Total fixed assets 437,000 612,000 175000 Total assets 749,000 965,000 216,000 Liabilities Current liabilities Accounts payable 43,000 50,000 7,000 Increase Accrued liabilities 9000 12.000 3,000 Increase Taxes payable 5,000 3,000 -2.000 Decrease Total current liabilities 57,000 65,000 8,000 Long-term liabilities: Bonds payable 245,000 295,000 50,000 Increase Total liabilities 302,000 360,000 58,000 Equity Ordinary shares, 5 euro par value 200,000 276,000 76,000 Increase Paid in capital in excess of par 115,000 189,000 74,000 Increase value Retained earnings 132.000 140,000 8,000 Increase Total equity 447,000 60,500 158,000 Total liabilities and equity 749,000 965,000 216.000 Income Statement for the year ended December 31, 2016 Net sales 698,000 Cost of goods sold 520,000 Gross margin 178,000 Operation expenses (including depreciation of fixed assets 37,000 147,000 Profit from ordinary activities 31,000 Other income and expenses from non-operating activities: Interest expense 23,000 6,000 12,000 3,000 (8,000) 23,000 7.000 16,000 Interest income Gain on sale of securities. Loss on sale of fixed assets Total other income and expenses Profit before taxes Income taxes Net profit The following other transactions, which are not related to operating activities, occurred during the reporting period: 1. Purchased securities for a total amount of 78,000. 2. Sold securities for 102.000. Book value for those securities was 90,000. 3. Purchased fixed assets in the amount of 120,000. 4. Sold fixed assets for 5.000. Original cost was 10,000, accumulated depreciation totaled 2,000. 5. Issued 100,000 of bonds in a non-cash exchange for fixed assets. 6. Repaid 50.000 of bonds at maturity. 7. Issued 15,200 shares of 5 par value common shares for 1000. 8. Paid dividends in the amount of 8,000. The End