Problem 23-3 Sunland Company has not yet prepared a formal statement of cash flows 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 follows.

SUNLAND COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 ($000 OMITTED) Sales revenue $3,840 Expenses Cost of goods sold $1,210 Salaries and benefits 730 Heat, light, and power 80 Depreciation 70 Property taxes 20 Patent amortization 30 Miscellaneous expenses 10 Interest 30 2,180 Income before income taxes 1,660 Income taxes 830 Net income 830 Retained earningsJan. 1, 2017 280 1,110 Stock dividend declared and issued 590 Retained earningsDec. 31, 2017 $520

SUNLAND COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2017 2016 Current assets Cash $235 $140 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 790 500 Inventory 740 540 Total current assets 1,775 1,230 Long-term assets Land 150 70 Buildings and equipment 930 590 Accumulated depreciationbuildings and equipment (170 ) (100 ) Patents (less amortization) 90 120 Total long-term assets 1,000 680 Total assets $2,775 $1,910 Liabilities and Stockholders Equity Current liabilities Accounts payable $391 $370 Income taxes payable 44 30 Notes payable 300 300 Total current liabilities 735 700 Long-term notes payabledue 2019 220 220 Total liabilities 955 920 Stockholders equity Common stock 1,300 710 Retained earnings 520 280 Total stockholders equity 1,820 990 Total liabilities and stockholders equity $2,775 $1,910

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).) SUNLAND COMPANY Statement of Cash Flows ($000 Omitted) $ $ $