Problem 12-10A

Condensed financial data of Splish Brothers Inc. follow.

Splish Brothers Inc. Comparative Balance Sheets December 31
Assets		2017			2016
Cash		$ 138,976			$ 83,248
Accounts receivable		151,016			65,360
Inventory		193,500			176,902
Prepaid expenses		48,848			44,720
Long-term investments		237,360			187,480
Plant assets		490,200			417,100
Accumulated depreciation		(86,000	)		(89,440	)
Total		$1,173,900			$885,370
Liabilities and Stockholders Equity
Accounts payable		$ 175,440			$ 115,756
Accrued expenses payable		28,380			36,120
Bonds payable		189,200			251,120
Common stock		378,400			301,000
Retained earnings		402,480			181,374
Total		$1,173,900			$885,370

Splish Brothers Inc. Income Statement Data For the Year Ended December 31, 2017
Sales revenue				$668,151
Less:
Cost of goods sold		$232,991
Operating expenses, excluding depreciation		21,345
Depreciation expense		79,980
Income tax expense		46,922
Interest expense		8,136
Loss on disposal of plant assets		12,900		402,274
Net income				$ 265,877

Additional information:

1.		New plant assets costing $172,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $98,900 and accumulated depreciation of $83,420 were sold for $2,580 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $44,771 was declared and paid during the year.

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