Solpoder Corporation has the following comparative financial statements:

Solpoder Corporation

Comparative Balance Sheets

At December 31, 2015 and 2016

1		2015	2016
2	Assets:
3	Cash	$49,500.00	$81,000.00
4	Accounts receivable, net	135,000.00	108,000.00
5	Inventory	27,000.00	54,000.00
6	Plant and equipment	180,000.00	180,000.00
7	Accumulated depreciation	(36,000.00)	(45,000.00)
8	Total assets	$355,500.00	$378,000.00
9	Liabilities and equity:
10	Accounts payable	$57,600.00	$18,000.00
11	Common stock	190,800.00	207,000.00
12	Retained earnings	107,100.00	153,000.00
13	Total liabilities and equity	$355,500.00	$378,000.00

Solpoder Corporation

Income Statement

For the Year ended December 31, 2016

1	Sales	$297,000.00
2	Less: Cost of goods sold	(175,500.00)
3	Gross margin	$121,500.00
4	Less: Operating expenses	(58,500.00)
5	Net income	$63,000.00

Dividends of $17,100 were paid. No equipment was purchased or retired during the current year.

	Required:
	Prepare a statement of cash flows using the direct method.

Amount Descriptions

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions
Cost of goods sold
Net decrease in cash
Net increase in cash
Operating expenses
Payment of dividends
Sales
Sale of common stock

Statement of Cash Flows, Direct Method

Complete the statement of cash flows under the direct method. (Note: Begin by entering the applicable income statement amounts. COGS amounts are reflected on two lines. Enter amounts as presented on the Instructions page. Use a minus sign to indicate a negative adjustment or a negative cash outflow. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Solpoder Corporation

Statement of Cash Flows Using Direct Method

For the Year ended December 31, 2016

1		Income Statement	Adjustments	Cash Flows
2	Cash flows from operating activities:
3
4
5
6
7	Net cash from operating activities
8	Cash flows from financing activities:
9
10
11	Net cash from financing activities
12