Adeva Health Foods, Inc.

Comparative Balance Sheet

Dec. 31, 2016 and 2015

	2016	2015
Cash	19000	3000
Accounts Receivable	22000	23000
Inventories	34000	31000
Prepaid expenses	1000	3000
Equipment, net	90000	79000
intangible assets	9000	9000
	175000	148000
Accounts payable	14000	9000
Accrued liabilities	16000	19000
Income tax payable	14000	12000
Notes payable	45000	50000
Common Stock	31000	20000
Retained Earnings	64000	40000
Treasury Stock	(9000)	(2000)
	175,000	148,000

Adeva Health Foods, Inc.

Income Statement

Year Ended December, 31, 2016

Sales Revenue... $190,000

Gain on sale of equipment... $6000

Total Revenue and Gains... $196,000

COGS... $85,000

Depreciation Expense... $19,000

Other operating expenses... $36,000

Total Expenses... $140,000

Income before income tax... $56,000

Income tax expense... $18,000

Net Income... $38,000

Additional Information:

1. Purchased equipment for cash

2. Sold equipment with a book value of $16,000

3. Paid down the note payable

4. Issued common stock for cash

5. Purchased Treasury Stock with cash

Construct a statement of Cash flow using the DIRECT METHOD for the year ending December 31, 2016.