Requirement 1. Prepare the

2024

statement of cash flows, formatting operating activities by the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.)

Complete the statement one section at a time, beginning with the cash flows from operating activities.

	Get Wired, Inc.
	Statement of Cash Flows
	Year Ended December 31, 2024
	Cash Flows from Operating Activities:
	Net Income
	Adjustments to Reconcile Net Income to Net Cash
	Provided by (Used for) Operating Activities:
	Net Cash Provided by (Used for) Operating Activities

	Cash Flows from Investing Activities:
	Net Cash Provided by (Used for) Investing Activities

	Cash Flows from Financing Activities:
	Net Cash Provided by (Used for) Financing Activities

	Net Increase (Decrease) in Cash
	Cash Balance, December 31, 2023
	Cash Balance, December 31, 2024

	Non-cash Investing and Financing Activities:
	Total Non-cash Investing and Financing Activities

Requirement 2. How will what you learned in this problem help you evaluate an investment?

A.

Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments

B.

Learn how to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay its debts and dividends

C.

Both A and B

D.

None of the above

Get Wired, Inc.

Income Statement

Year Ended December 31, 2024

Net Sales Revenue

$439,000

Cost of Goods Sold

205,200

Gross Profit

233,800

Operating Expenses:

Salaries Expense

$73,400

Depreciation ExpensePlant Assets

14,800

Other Operating Expenses

10,800

Total Operating Expenses

99,000

Operating Income

134,800

Other Income and (Expenses):

Get Wired, Inc.
Comparative Balance Sheet
December 31, 2024 and 2023
	2024	2023
Assets
Current Assets:
Cash	$26,300	$15,400
Accounts Receivable	26,600	25,600
Merchandise Inventory	79,100	91,600
Long-term Assets:
Land	35,200	13,000
Plant Assets	124,850	114,480
Accumulated DepreciationPlant Assets	(21,950)	(19,780)
Total Assets	$270,100	$240,300
Liabilities
Current Liabilities:
Accounts Payable	$35,800	$30,600
Accrued Liabilities	28,100	30,000
Long-term Liabilities:
Notes Payable	76,000	102,000
Total Liabilities	139,900	162,600
Stockholders' Equity
Common Stock, no par	88,100	65,000
Retained Earnings	42,100	12,700
Total Stockholders' Equity	130,200	77,700
Total Liabilities and Stockholders' Equity	$270,100	$240,300

Interest Revenue

8,200

Interest Expense

(21,500)

Total Other Income and (Expenses)

(13,300)

Net Income Before Income Taxes

121,500

Income Tax Expense

19,600

Net Income

$101,900