Provide:

a$)$ a direct statement of cash flows, and

b$)$ an indirect statement with the following information:

The following transactions occurred during the twelve$-$month accounting

period ending December $31,2016$ for Hammerhead, Inc. $($Corporation$).$

Be sure to include in your analysis any adjusting journal entries that may be

required at year end.

$*$ On January $1,$ the Owners initially capitalized the Corporation by

contributing Cash to the Corporation for $100$ shares of common stock with

a market price of $$10,000$ per share.

$*$ On March $1,$ the Corporation purchased Land for $$250,000,$ financed by

signing a one$-$year $$250,000$ Promissory Note. The annual rate of interest

on the Note is $12\%.$ Interest and Principal will be paid at maturity on March

$1,2017$

$*$ On July $1,$ the Corporation received an advance cash payment of

$$500,000$ from a customer for services the Corporation will render at the

same rate each month for the next $12$ months $($$$41,666\mathrm{.}67$ each month

from July $1,2016$ through June $30,2017).$

$*$During $2016,$ the Corporation incurred Operating Expenses of $200,000$

$($$$150,000$ were paid in cash and $$50,000$ were on account and remained

unpaid at December $31,2016).$