Need help with how to "analyze" this in terms of how to phrase things properly and understanding how points 6 & 7 fit into things.

The balance sheet accounts of Rockwall Corporation at the beginning and end of 2016 are:

	31-Dec-16	1-Jan-16
Cash	$99,435	$110,700
Accounts Receivable	$424,600	$380,900
Inventory	$635,740	$576,475
Prepaid Expenses	$20,000	$12,000
Investment in subsidiary	$200,000	$0
Held to Maturity Debt Securities	$16,460	$14,850
Land	$100,000	$100,000
Buildings	$525,000	$400,000
Equipment	$381,000	$290,000
Patents	$86,000	$70,000
Trademarks	$25,000	$35,000
Bond Discount and issue costs	$1,165	$6,075
Total Debits	$2,514,400	$1,996,000
Accounts payable	$534,000	$508,000
Income Taxes payable	$68,000	$34,500
Salaries and wages payable	$73,500	$12,900
Allowance for doubtful accounts	$25,000	$23,000
Accumulated depreciation - buildings	$248,000	$230,000
Accumulated depreciation - equipment	$160,000	$103,000
Long-term notes payable	$75,000	$75,000
Bonds payable	$400,000	$300,000
Premium on bonds payable	$7,762	$0
Common stock	$150,000	$125,000
Paid-in capital in excess of par-common stock	$568,000	$418,000
Retained earnings	$205,138	$166,600
Total credits	$2,514,400	$1,996,000

You also have the following information:

1. On November 1, 2016, 25,000 shares of $1 par stock were sold for $175,000.

2. A patent was purchased for $31,000

3. During the year, equipment that had a cost basis of $26,400 and on which there was accumulated depreciation of $5,800 was sold for $15,000. No other plant assets were sold during the year.

4. The 10%, $300,000 40-year bonds were dated and issued on January 2, 2003. Interest was payable on June 30 and December 31. They were sold originally at 97. These bonds were retired at 101 plus accrued interest on May 31, 2016.

5. The 6%, $400,000 20-year bonds were dated January 1, 2016, and were sold on May 31 at 102 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $1,200.

6. Rockwall Corporation acquired 60% control in Jones Company on January 2, 2016, for $146,000. The income statement of Jones Company for 2016 shows a net income of $90,000.

7. Extraordinary repairs to buildings of $12,600 were charged to Accumulated Depreciation Buildings.

8. Interest paid in 2016 was $31,000 and income taxes paid were $38,000.

9. Net income for the year totaled $76,538.

Instructions:

a) From the information given, prepare a statement of cash flows using the indirect method. The company uses straight-line amortization for bond interest.

b) Analyze the activities of Rockwall Corporation during 2016.