Comparative balance sheets and 2010 income statement of King supply Corp. Follow:

King Supply had no noncash investing and financing transactions during 2010. During the year. there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.
Requirements
1. Prepare the 2010 statement of cash flows, formatting operating activities by using the indirect method.
2. How will what you learned in this problem help you evaluate an investment?

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King Supply Corp. Comparative Balance Sheets December 31, 2010 Incrcase 2009 (Decreasc Current assets Cash and cash equivalent.17,600 S 5,000 12,600 45,500 44,500 1,000 79,100 67,500 11,600 Accounts receivable Inventories Prepaid expens 2,100 6,000 (3,900) Plant assets: 69,100 21,90047,200 53,10049200 3,900 5266,500 S154100 572.400 $ 35,800 S 25,600 10,200 22,000 15,600 6,400 Land Equipment, ne3,100 Total assets Current liabilities: Accounts payable Salary payable Other accrued liabalitis. 22,900 24,200 (1,300) 50,000 37,000 13,000 88,600 64,300 24,300 Long-term liabilitiess Noces payabe Stockholders' equity: Common stock, no-par Retained earning 47200 27.400 19.800 'equity $266,500 $194,100 72.400 King Supply Corp. Income Statemeot Year Ended December 31, 2010 Reveners Sales reseaac $445,000 Expensc Cost ofgoods sold Salary expense Depreciation expense Other operating expes Iaterest expense Iacone tax expese $185,100 76.400 17.400 49,800 24,800 Toca expenses 383,000 Nrt