Splish Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SPLISH INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $6,900 61,400 51,200 Accounts receivable Short-term debt investments (available-for-sale) 34,700 18,000 Inventory 40,200 59,700 Prepaid rent 5,000 4,100 130,200 Equipment 152,700 Accumulated depreciation-equipment (35,400 ) (25,000 ) 49,900 Copyrights 45,700 $310,200 $295,000 Total assets Accounts payable $40,400 $46,300 Income taxes payable 3,900 6,000 Salaries and wages payable 3,900 8,100 Short-term loans payable 8,100 10,100 Long-term loans payable 60,200 69,400 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 53,600 35,200 Total liabilities & stockholders' equity $310,200 $295,000 SPLISH INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue $335,075 Cost of goods sold 175,200 Gross profit 159,875 Operating expenses 120,100 Operating income 39,775 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 30,375 Income tax expense 6,075 $24,300 Net income Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2017. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SPLISH INC. Statement of Cash Flows