Peoria Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2017 $1,250,040 701,320 Sales revenue Cost of goods sold Gross profit Operating expenses Income before interest and taxes Interest expense Income before taxes Income tax expense Net income $548,720 149,060 $399,660 25,120 $374,540 149,816 $224,724 Presented here are comparative balance sheets: Presented here are comparative balance sheets: December 31 2017 2016 Cash Accounts receivable Inventory Prepayments Total current assets $51,880 180,530 228,910 15,100 $476,420 $750,150 701,860 (248,670) $1,203,340 $1,679,760 $131,850 66,900 $88,460 129,460 201,390 24,600 $443,910 $598,320 501,750 (199,730) $900,340 Land Plant and equipment Accumulated depreciation Total long-term assets Total assets $1,344,250 91,690 Accounts payable Other accrued liabilities Income taxes payable Total current liabilities Long-term bank loan payable Common stock Retained earnings $290,440 $349,380 $550,840 489,100 $1,039,940 $1,679,760 $149,330 63,130 110,580 $323,040 $301,980 $396,730 322,500 $719,230 $1,344,250 Total stockholders' equity Total liabilities and stockholders' equity Other information is as follows: a. Dividends of $58,124 were declared and paid during the year. b. Operating expenses include $48,940 of depreciation. c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans. The president has asked you some questions about the year's results. She is very impressed with the profit margin of 17.98% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing bank loan is that the company maintain a minimum cash balance of $48,940. Required: Statement of Lasn Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Cash collections from customers Cash payments for: Inventory Operating expenses Interest Income taxes Total cash payments Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of land Acquisition of plant and equipment Net cash used by investing activities Cash Flows from Financing Activities Additional long-term borrowings Issuance of common stock Cash dividends paid Net cash provided by financing activities Net cash provided by financing activities Net decrease in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017