Required information [The following information applies to the questions displayed below] The following financial statements and information are available for Gibson Industries, Inc.: Balance Sheets As of December 31 2017 2016 Assets 161,500 104,400 Cash $ 121,600 85,9b0 173,000 221,1p0 491,500 (238,7p0) Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation 187,400 290,100 667,600 (308,800 81,200 Land 119,300 Total assets 973,700 1,183,400 Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable 37,600 230,000 202,600 67,300 251,4b0 101,300 420,ee Total liabilities 470,200 Stockholders' equity Common stock, Preferred stock, $50 par 201,300 91,600 27,6b0 241,200 111,600 no par Paid-in capital in excess of par-Preferred stock Total paid-In capital Retained earnings Less: Treasury stock Total stockholders' equity 35,600 388,400 320,500 301,7p0 (68,500) 553,730 363,300 (38,500 713,200 $1,183,400 973,700 Total liabilities and stockholders' equity Income Statement For the Year Ended December 31, 2017 $1,051,200 (767,500) 283,700 Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreciation expense Total operating expenses Operating income Nonoperating items Interest expense 21,600 93,300 91,300 (206,200) 77,500 (15,200) 32,400 15,700 Gain from the sale of marketable securities Gain from the sale of land and equipment $ Net income 110,400 Additional Information 1. Sold land that cost $38,100 for $42,100. 2. Sold equipment that cost $28,900 and had accumulated depreciation of $21,200 for $19,400 3. Purchased new equipment for $205,000. 4. Sold marketable securities that were classified as available-for-sale and that cost V $43,000 for $75,400 5. Purchased new marketable securities, classified as available-for-sale, for $112,000. 6. Paid $21,400 on the principal of the long-term note. 7. Paid off a $101,300 bond issue and issued new bonds for $202,600. 8. Sold 200 shares of treasury stock at its cost. 9. Issued some new common stock. 10. Issued some new $50 par preferred stock. 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) a. Prepare the statement of cash flows for Gibson Industries using direct method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) GIBSON INDUSTRIES, INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities Cash Receipts from: Sales Total cash inflows $ Cash payments for Interest Operating expenses Inventory purchased Total cash outflows Net cash inflow from operating activities Cash flows from investing activities: Paid to purchase equipment Paid to purchase marketable securities Proceeds from sale of land Proceeds from sale of equipment Proceeds from sale of marketable securities Net cash outflow from investing activities Cash flows from financing activities: Repayment of bonds Repayment of loan Proceeds from preferred stock issue Proceeds from common stock issue Payment of dividends Proceeds from sale of treasury stock Proceeds from bonds issue Net cash inflow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance