The 19X3 comparative balance sheet and income statement of Silverado, Inc., follow:

Silverado had no noncash investing and financing transactions during 19X3. During the year there were no sales of land or equipment, no issuances of notes payable, no retirements of stock, and no treasury stock transactions.
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1. Prepare the \(19 \mathrm{X} 3\) statement of cash flows, formating operating activities by the direct method.
2. How will what you learned in this problem help you evaluate an investment?

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COMPARATIVE BALANCE SHEET Increase 19X3 19X2 (Decrease) Current assets: Cash and cash equivalents. Accounts receivable. Interest receivable.. Inventories.. Prepaid expenses.. Plant assets: Land Equipment, net. Total assets... Current liabilities: Accounts payable. Interest payable... Salary payable. Other accrued liabilities Income tax payable. Long-term liabilities: Notes payable. Stockholders' equity: $ 13,700 41,500 600 $ 15,600 $ (1,900) 43,100 (1,600) 900 (300) 94,300 89,900 4,400 1,700 2,200 (500) 35,100 10,000 25,100 100,900 93,700 7,200 $287,800 $255,400 $32,400 $ 16,400 $ 17,900 $ (1,500) 6,300 6,700 (400) 2,100 1,400 700 18,100 18,700 (600) 6,300 3,800 2,500 55,000 65,000 (10,000) Common stock, no-par. 131,100 122,300 8,800 Retained earnings.. 52,500 19,600 32,900 Total liabilities and stockholders' equity. $287,800 $255,400 $32,400