1. Prepare Granger Tool & Die Companys statement of cash flows for the year ended December 31, 2016 using the indirect method.

2. Evaluate Granger Tool & Die Companys cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

ercise Statement of Cash Flows Preparation- Indirect Method The income statement and additional data of Granger Tool & Die Company follow: Granger Tool & Die Company Income Statement Year ended December 31, 2016 Revenues: Service revenue $273,000 Dividend revenue 8,700 $281,700 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense 135,000 59,000 28,000 2,900 2,100 16,400 243,400 $ 38,300 Net Income