P17-3B The 20X5 comparative balance sheet and income statement of Dayrunner Corp. follow.DAYRUNNER CORP. Comparative Balance Sheet December 31, 20X5 20X4 Increase (Decrease) Current assets: Cash and cash equivalents.. Accounts receivable. $ 14.200 $ 5,300 $ 8,900 Interest receivable... Inventories..... Prepaid expenses Plant assets: Land Equipment, net. Total assets.. Current liabilities: 28.600 1,900 26.900 1,700 700 1.200 83,600 87.200 (3,600) 2,500 1.900 600 89,000 60.000 29,000 53,500 49.400 4,100 $273,300 $231.400 $41.900 Accounts payable. $ 31,400 $ 28,800 $ 2,600 Interest payable 4,400 4,900 (500) Salary payable.. 3,100 6,600 (3.500) Other accrued liabilities 13,700 16,000 (2,300) Income tax payable.. 8.900 7.700 1,200 Long-term liabilities: Notes payable... 75.000 100,000 (25,000) Stockholders' equity: Common stock, no-par. Retained earnings.. 88.300 48.500 64.700 23,600 2,700 45,800 Total liabilities and stockholders" equity............ $273,300 $231,400 $41,900 Revenues: DAYRUNNER CORP. Income Statement for 20X5 Sales revenue... $220,000 Interest revenue Total revenues. Expenses: 8.600 228.600 Cost of goods sold. $70.600 Salary expense... 27,800 Depreciation expense. 4,000 Other operating expense 10,500 Interest expense.. 11,600. Income tax expense. 29,100 Total expenses. 153,600 $ 75.000 Net income. Dayrunner had no noncash investing and financing transactions during 20X5. 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. Required 1. Prepare the 20X5 statement of cash flows, formatting operating activities by the direct method.. 2. How will what you learned in this problem help you evaluate an investment?