SECTION C (20 marks) Ques. C1 Traynham Company runs a retail company and recently completed its thind year of operations. The balance sheet and income statement follow: 2016 Income Statement for 201 ssets Cash Accounts receivable Inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Long-term notes payable Common stock, $2 par Paid-in capital in excess of par Retained earnings $337,400 204,000 4,300 87,000 14,500 $ 27.600 S 53,000 S 58,100 Sales revenue 21,000 24,300 Cost of goods sold 30,800 29,200 Depreciation expense 123,000 92,000 Other expenses 28,500 24,200 Income taxes si99300 ?29400 Net income s 36,300 $ 33,000 11,000 8,000 28,000 36,000 15,000 12,000 38,000 31,000 71,000 59.400 Total liabilities and equity $199,300 $179.400 Additional Information on Year 2017 Transactions 1. Purchased equipment by paying signing a long-term note for $8,000 and paying cash for the balance 2. Paid cash as a payment on the long-term notes payable 3. Issued 100 shares of common stock for cash 4. Declared and paid cash dividends of $16,000 Instructions: Prepare a statement of cash flows for the year 2017 ICLOS: 10 marks) Page 6 of 10