Blaylock Company provided the following partial comparative balance sheets and the income statement for 2016.

Blaylock Company

Comparative Balance Sheets

At December 31, 2015 and 2016

1		2015	2016
2	Current assets:
3	Accounts receivable	$750,000.00	$582,500.00
4	Inventories	300,000.00	320,000.00
5	Long-term assets:
6	Plant and equipment	2,200,000.00	2,150,000.00
7	Accumulated depreciation	(1,200,000.00)	(1,270,000.00)
8	Land	1,000,000.00	1,437,500.00
9	Current liabilities:
10	Wages payable	$700,000.00	$515,000.00
11	Long-term liabilities:
12	Bonds payable	0.00	385,000.00
13	Mortgage payable	100,000.00	0.00
14	Common stock	375,000.00	375,000.00
15	Paid-in capital in excess of par	280,000.00	280,000.00
16	Retained earnings	1,825,000.00	2,325,000.00

Blaylock Company

Income Statement

For the Year Ended December 31, 2016

1	Revenues	$3,000,000.00
2	Gain on sale of equipment	100,000.00
3	Less: Cost of goods sold	(1,920,000.00)
4	Less: Depreciation expense	(270,000.00)
5	Less: Interest expense	(10,000.00)
6	Net income	$900,000.00

Required:
1.	Prepare a statement of cash flows for Blaylock for 2016.
2.	Reflect on the relationship between the statement of cash flows and the change in cash.

1. Prepare a statement of cash flows for Blaylock for 2016. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Blaylock Company

Statement of Cash Flows

For the Year Ended December 31, 2016

1	Cash flows from operating activities:
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3	Add (deduct) adjusting items:
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10	Cash flows from investing activities:
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15	Cash flows from financing activities:
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