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Clear Strategy Corp., a strategic marketing consulting firm, began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016, and 2017, is shown below along with some other information.
Other information regarding Clear Strategy Corp. and its activities during 2017: 1. Assume all accounts have normal balances. 2. Share dividends were declared and issued during the year. 3. Equipment was sold for cash equal to its book value. Required: Prepare a statement of cash flows for 2017 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All accounts payable balances result from other expenses. b. All consulting revenue is done on credit. c. All credits to accounts receivable are receipts from customers. d. All debits to accounts payable result from payments for other expenses.