The 2017 comparative balance sheet and income statement of Riverbend Pools Inc. follow. Riverbend had no non-cash investing and financing transactions during 2017. During the year, there were no sales of land or equipment, no issuances of notes payable, and no share repurchase transactions.

Requirements
Prepare the 2017 statement of cash flows by using the direct method.

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Riverbend Pools Inc. Comparative Balance Sheet As at December 31, 2017 and 2016 Increase 2 3 Current assets: 4 2017 2016 (Decrease) Cash and cash equivalents Accounts receivable Inventories $ 28,700 15,60013,100 3,100 4,400 (500) 47,100 94,300 1,700 44,000 89,900 2,200 7 Prepaid expenses 8 Property, plant, and equipment: Land 25,100 7,200 $307,800 255,40052,400 35,100 100,900 10,000 93,700 10 11 Total assets 12 Current liabilities: 13 Accounts payable 14 Sala 15 Other accrued liabilities 16 Long-term liabilities 17 18 Shareholder's equity 19 Common shares 20 21 Total liabilities and shareholders' equity uipment, net $ 22,700 24,600(1,900) 700 1,900 2,100 24,400 1 ,400 22,500 Notes payable 55,000 65,000 (10,000) 131,100 72,500 $307,800 122,300 19,600 255,400 8,800 52,900 $52,400 Retained earnnings Riverbend Pools Ino. Income Statement For the Year Ended December 31, 2017 2 Revenues: Sales revenue 438,000 11700 449,700 4 Interest revenue Total revenu es 6 Expenses: Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense $185,200 76,400 15,300 49,700 24,600 16,900 10 12 13 14 Net income 15 Total expenses $ 81,600