Problem 12-10A

Condensed financial data of Granger Inc. follow.

Granger Inc. Comparative Balance Sheets December 31
Assets		2017			2016
Cash		$ 80,800			$ 48,400
Accounts receivable		87,800			38,000
Inventory		112,500			102,850
Prepaid expenses		28,400			26,000
Long-term investments		138,000			109,000
Plant assets		285,000			242,500
Accumulated depreciation		(50,000	)		(52,000	)
Total		$682,500			$514,750
Liabilities and Stockholders Equity
Accounts payable		$ 102,000			$ 67,300
Accrued expenses payable		16,500			21,000
Bonds payable		110,000			146,000
Common stock		220,000			175,000
Retained earnings		234,000			105,450
Total		$682,500			$514,750

Granger Inc. Income Statement Data For the Year Ended December 31, 2017
Sales revenue				$388,460
Less:
Cost of goods sold		$135,460
Operating expenses, excluding depreciation		12,410
Depreciation expense		46,500
Income tax expense		27,280
Interest expense		4,730
Loss on disposal of plant assets		7,500		233,880
Net income				$ 154,580

Additional information:

1.		New plant assets costing $100,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $26,030 was declared and paid during the year.

Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Granger Inc. 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).)