Problem 16-58 Direct: Statement of cash flows P1 P3 P5 Refer to Gazelle Corporation's financial statements and related information in Problem 16-3B. Required Prepare a complete statement of cash flows; report its operating activities according to the direct method Disclose any noncash investing and financing activities in a note. Check Cash used in financing activities, $(51,100) orporation, a merchandiser, recently completed its calendar-year 2017 operations. For the year, Problem 16-38 (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, Indirect: Statement of (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for cash flows inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The A1 company's balance sheets and income statement follow P1 P2 P3 GAZELLE CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets $123.450 77,100 61,550 80,750 17,000 456.250 410,000 262,250 200,000 (110,750) (95,000) $607,750 $515,000 15.100 GAZELLE CORPORATION Income Statement For Year Ended December 31, 2017 Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par Paid-in capital in excess $1,185,000 595,000 Sales Cost of goods sold $ 17.750 $102.000 Gross profit 5,000 10.,000 32,750 112,000 100,000 132,750 189,500 Operating expenses 38,600 362,850 Depreciation expense 77,500 401,450 188,550 . 215,000 200,000 Other gains (osses Loss on sale of equipment.. 12,100 30,000 230,000125.500 186.450 28,350 S 158,100 Income taxes expense Retained earnings... $607.750 $515,000 Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $2,100 (details in b). b. Sold equipment costing $51,000, with accumulated depreciation of $22.850, for $26,050 cash. c. Purchased equipment costing $113,250 by paying $43.250 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $47.500 cash to reduce the long-term notes payable. f. Issued 3,000 shares of common stock for $15 cash per share g. Declared and paid cash dividends of $53,600