The 2017 comparative balance sheet and income statement of 4 Seasons Supply Corp. follow. 4 Seasons had no non-cash investing and financing transactions during 2017. During the year, there were no sales of land or equipment, no issuance of notes payable, and no repurchase of shares transactions.

Requirements
1. Prepare the 2017 statement of cash flows using the direct method.
2. How will what you learned in this problem help you evaluate an investment?

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4 Seasons Supply Corp Comparative Balance Sheet As at December 31, 2017 and 2016 2 December 31 Increase 2017 2016 (Decrease) 4Current assets: 5 Cash and cash equivalents S 17,600S 5,30012,300 Accounts receivable 27,200 83,600 2,500 27,600 87,200 1,900 (400) (3,600) 600 Prepaid expenses plant, and equip 9 Pro 10 Land 60,000 49,400 273,400 231,400 89,000 53,500 29,000 4,100 42,000 uipment, net 12 Total assets 13 Current liabilities: 14 Accounts payable 15 Salary payable 16 Other accrued liabilities 17 Long-term liabilities: 18 Notes payable 19 Shareholders' equity: 20 Common shares 21 Retained earnings 22 Total liabilities and shareholders' equity 23 S 35,800 33,7002,100 (3,500) (1,100) 3,100 6,600 23,700 22,600 75,000 88,300 100,000 (25,000) 64,700 2,700 $ 273,400 $ 231,400 23,600 45,900 42,000 48,600 4 Seasons Supply Corp Income Statement For the Year Ended December 31, 2017 2 Revenues Sales revenue 228,700 4 Expenses: 5 Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses Net income $70,600 27,800 4,000 10,500 11,600 29,100 7 10 153,600 $ 75,100 12 13