Using the financial statement provided, prepare a complete Statement of Cash Flows that shows both the direct method and the indirect method for summarizing cash flow from operating activities. Note to complete the assignment you will need to calculate items such as dividends paid (Retained Earnings & AOCI₂₀₁₈ Net income₂₀₁₈ Retained Earnings & AOCI₂₀₁₇ = Dividends paid₂₀₁₈), capital expenditures (Net Fixed Assets₂₀₁₇ Book Value of Fixed Assets Sold₂₀₁₈ Depreciation Expense₂₀₁₈ Net Fixed Assets₂₀₁₈ = Capital expenditures made₂₀₁₈, and investment in intangible assets (Intangible Assets₂₀₁₇ Amortization of Intangible Assets₂₀₁₈ Intangible Assets₂₀₁₈ = Investment in intangible assets₂₀₁₈.)

	2018	2017			2018
Cash	$315	$108		Sales	$6,475
Short-term investments	841	1,077		Less: Cost of goods sold	4,028
Accounts receivable	1,225	453		Gross profit	2,447
Inventories	745	845		Less: Cash operating expenses	1,783
Other current assets	404	151		Depreciation expense	94
Total current assets	3,530	2,634		Amortization expense	91
Gross fixed assets	1,055	1,001		Operating income (EBIT)	479
Less: Accumulated depreciation	707	739		Less: Interest expense	121
Net fixed assets	348	262		Other nonoperating income (expense)	5
Equity method investments	58	60		Income from equity method investments	(2)
Other long-term investments	34	36		Gain (loss) on sale of fixed assets	15
Goodwill	299	289		Earnings before taxes	376
Other intangible assets	192	200		Tax expense	61
Other noncurrent assets	95	71		Net income	$315
Total assets	$4,556	$3,552
Current portion of long-term debt	136	70
Short-term debt (notes payable)	45	35
Accounts payable	528	584
Taxes payable	15	7
Accrued expenses	759	555
Deferred revenue	11	85
Other current liabilities	490	178
Total current liabilities	1,984	1,514
Long-term debt	1,294	1,324
Deferred income taxes	4	16
Other noncurrent liabilities	88	102
Total liabilities	3,370	2,956
Common stock and add. paid-in capital	8,855	8,472
Retained earnings	(7,536)	(7,774)
Accum. other comp. income	(8)	6
Less: Treasury stock	125	108
Total equity	1,186	596
Total liabilities and equity	$4,556	$3,552

Footnote

During the year, the company received cash of $154 when it sold fixed assets with a net book value of $139, which gave rise to the $15 gain that appears on the income statement

Check figure for cash flow from operations = -$94. Likewise, the overall change in cash documented on the statement of cash flow must equal the $207 increase in cash shown on the balance sheets.