LL SCREEN PONTER VERS CALOLATORESSAGE Y INSTRCTOR BACK NEXTL Problem 23-3 Teal Company has not yet prepared a formal statement of cash flows for the 2017 fiscal year. Comparative balance sheets as of December 31, 2016 and 2017, and a statement of income and retained earnings for the year ended December 31, 2017, are presented as follows. TEAL COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 ($000 OMITTED) Sales revenue $3,760 Expenses Cost of goods sold $1,220 Salaries and benefits 710 70 Heat, light, and power Depreciation 80 Property taxes 20 20 Patent amortization Miscelaneous expenses 10 2.160 nberest Income before income taxes 1.60 800 Income taxes s00 Net income 330 Retained eanings-Jan, 1, 2017 1,130 620 Stock dividend declared and issued $510 Retained earnings-Dec. 31, 2017 TEAL COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) 2017 Assets 2016 Current assetsa Cash $333 $120 US. Treasury notes (available-for-sale) 10 Accounts receivable 780 510 ventory 700 560 Total current assets 1823 1,240 Long-term assets 70 Land 150 Buildings and equipment 920 620 Accumulated depreciation-buldings and equipment (210) (130) Patents (less amortization) 120 140 960 Total long-term assets 700 2803 $1.940 Total assets Liabilities and Stockholders Equity Current Babilibies Accounts payable $393 $340 30 Income taxes payable Notes payable 330 330 Total current labinies 763 700 Long-term notes payable-due 2019 190 190 890 953 Total Babilities Stockholders' equity Common stack 1,340 720 Retained eamings 510 330 Toeal steckholders equity 1850 1,050 $2.803 1.940 Total labilities and stockholders equity Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (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).) TEAL COMPANY Statement of Cash Flows (S000 Omitted)