Requirements

1.	Prepare the 2016 statement of cash flows, formatting operating activities by the indirect method.
2.	How will what you learned in this problem help you evaluate an investment?

The 2016 income statement and comparative balance sheet of Digital Subscriptions, Inc. follow: (Click the icon to view the income statement.)(Click the icon to view the comparative balance sheet.) Additionally, Digital Subscriptions purchased land of $24,400 by financing it 100% with long-term notes payable during 2016. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $11,340. The plant acquisition was for cash. Requirements 1. Prepare the 2016 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment