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.