Problem 23-3 Sarasota Company has not yet prepared a formal statement of cash flows for the 2017 fiscal year. Com parative 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 follows. SARASOTA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 ($000 OMITTED) Sales revenue $3,830 Expenses Cost of goods sold $1,190 Salaries and benefits 740 Heat, light, and power 80 Depreciation 80 Property taxes 20 Patent amortization 30 Miscellaneous expenses 10 Interest 30 2,180 Income before income taxes 1,650 Income taxes 825 Net income 825 Retained earnings-Jan. 1, 2017 320 1,145 Stock dividend declared and issued 605 $540 Retained earnings-Dec. 31, 2017 SARASOTA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) 2017 2016 Assets Current assets Cash $345 $90 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 760 500 Inventory 550 720 Total current assets 1,190 1,835 Long-term assets Land 160 70 Buildings and equipment 590 920 Accumulated depreciation-buildings and equipment (190) (110) Patents (less amortization) 80 110 Total long-term assets 970 660 $2,805 $1,850 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable $436 $320 Income taxes payable 30 44 Notes payable 310 310 Total current liabilities 790 660 Long-term notes payable-due 2019 180 180 Total liabilities 970 840 Stockholders' equity Common stock 690 1,295 Retained earnings 540 320 Total stockholders' equity 1,835 1,010 $2,805 $1,850 Total liabilities and stockholders' equity Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (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).) SARASOTA COMPANY Statement of Cash Flows ($000 Omitted $ $ $