Problam 23-3 Monty Company has not yet prepared a formal statement of sh flo s 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 ollows. ONTCOME AND RETAINED STATEHENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 ($000 OMITTED) Sales revenue 3,800 Cost of goods sold Salaries and benefits $1,210 Heat, light, and power Property taxes Patent amortization Miscellaneous expenses Income before income taxes Income taxes Net income Retained earnings-Jan. 1 2017 1,620 1,100 Stock dividend declared and Retained earnings-Dec. 31, MONT BALANCE SHEETS AS OF DECEMBER 31 10 50 770 510 U.S. Treasury notes (available-for-sale) Long-term assets 140 70 and equipment (220) (140) Patents (less amortization) Liabilities and Stockholders' Equity $457 350 otal current liabilities ,260 700 Common stock $2,86O Total liabilities and stockholders' equity and financing sections Prepare a st ement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold or in parenthesis e.g. (15,000)) Show amounts in the west ng that decrease cash w w th either a sign e g -1 00 15,000 sigt e - that decrease cash w with either. and financing sections Prepare a statement of cas no s using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of 0 ds sold or in parenthesis e.g. (15,000)) Show amounts in the investing ofr ce1500) HONTY COMPANY of Cash Fows