Statement of Cash Flows-Direct Method Peoria Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2017 Sales revenue $1,248,530 Cost of goods sold 699,540 Gross profit $548,990 Operating expenses 151,870 Income before interest and taxes $397,120 Interest expense 25,940 Income before taxes $371,180 Income tax expense 148,472 Net income $222,708 Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayments Total current assets Land Plant and equipment Accumulated depreciation Total long-term assets Total assets Accounts payable Other accrued liabilities Income taxes payable Total current liabilities Long-term bank loan payable Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2017 2016 $52,340 $88,440 178,470 130,320 228,470 201,980 15,430 25,100 $474,710 $445,840 $751,270 $599,850 698,330 500,860 (249,090) (201,450) $1,200,510 $899,260 $1,675,220 $1,345,100 $129,970 $148,340 69,660 63,910 91,640 110,900 $291,270 $323,150 $351,430 $299,260 $542,010 $399,280 490,510 323,410 $1,032,520 $722,690 $1,675, 220 $1,345,100 a. Dividends of $55,608 were declared and paid during the year. b. Operating expenses include 547,640 of depreciation c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash Cash also was received from additional bank loans. The president has asked you some questions about the year's results. She is very impressed with the profit margin of 17.84% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing bank loan is that the company maintain a minimum cash balance of $47,640 Required: 1. Prepare a statement of cash flows for 2017 using the direct method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Cash Flows from Operating Activities Cash collections from customers Cash payments for: Inventory Operating expenses Interest Income taxes Total cash payments Net cash provided by operating activities O QU000 000 00 Cash Flows from Investing Activities Acquisition of land Acquisition of plant and equipment Net cash used by investing activities Cash Flows from Financing Activities Additional long-term borrowings Issuance of common stock Cash dividends pald Net cash provided by financing activities Net decrease in cash Issuance of common stock Cash dividends paid Net cash provided by financing activities 2000oud Net decrease in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017