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In: AccountingExercise 23-12Condensed financial data of Headland Company for 2017 and 2016are presented below.HEADLAND...Exercise 23-12Condensed financial data of Headland Company for 2017 and 2016are presented below.HEADLAND COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2017 AND 201620172016Cash$1,810$1,120Receivables1,7901,330Inventory1,5701,940Plant assets1,8701,740Accumulated depreciation(1,230)(1,150)Long-term investments (held-to-maturity)1,3001,440$7,110$6,420Accounts payable$1,220$910Accrued liabilities200260Bonds payable1,3701,550Common stock1,8601,740Retained earnings2,4601,960$7,110$6,420HEADLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2017Sales revenue$6,810Cost of goods sold4,680Gross margin2,130Selling and administrative expenses920Income from operations1,210Other revenues and gains   Gain on sale of investments80Income before tax1,290Income tax expense530Net income760Cash dividends260Income retained in business$500Additional information:During the year, $70 of common stock was issued in exchange forplant assets. No plant assets were sold in 2017.Prepare a statement of cash flows using the direct method.(Show amounts in the investing and financing sectionsthat decrease cash flow with either a - sign e.g. -15,000 or inparenthesis e.g. (15,000).)