3. The following comparative balance sheets and income statement are available for AddieMae Inc. Prepare a statement of cash flows for 2016 using the indirect method and analyze the statement. December 31, 2016 2015 Cash $ 3 300 $1 000 Accounts receivable (net) 1,100 600 Inventory 11,200 4,300 Total Current Assets $15,600 $5,900 Plant and equipment $ 3,000 $2,300 Less accumulated depreciation (1,300) (800) Plant and equipment (net) $ 1,700 $1,500 Long-term invesbnents 1,200 900 Total Assets $18,500 $8,300 Accounts payable $ 3 300 $2,500 Accrued liabilities 700 600 Income taxes payable 400 100 Total Current Liabilities $ 4,400 $3,200 Long-term debt 200 0 Total Liabilities $ 4,600 $3,200 Common stock ($1par) and additional paid-in capital 9,900 7,300 Retained earnings 4,000 (2,200) Total Liabilities and Equity $18,500 $8,300 Income Statement for 2016 Sales $94 000 Cost of goods sold 55 000 Gross profit $39,000 Selling and administrative $ 28,800 Depreciation 500 29,300 Operating profit $ 9,700 Interest expense 100 Earnings before tax $ 9 600 Tax expense 3 400 Net income $ 6,200