Provide:

a) a direct statement of cash flows, and

b) an indirect statement with the following information:

-there is no further information given in the question to provide!

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 ($41,666.67 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).