S & S INC.

Balance sheet

As of December $31,2016$

$20162015$

Actif

Current Assets short$-$term

Cash $450,000$ $ $75,000$ $

Temporary Investments $50,000100,000$

Accounts Receivable, net $500,000350,000$

Merchandise Inventory $837,0001,275,000$

Total Current Assets $1,837,0001,800,$

Class A Shares $225,00025,000$

Class B Shares $95,000150,000$

Retained Earnings $2,494,0002,075,000$

Total Equity $2,814,0002,250,000$

Total Liabilities and Equity $3,936,000$ $ $3,309,000$ $

Other information

$1)$ On February $15,2016,$ the Company sold a piece of equipment for $$15,000.$ This piece had cost $$30,000$ four years ago and was $50\%$ depreciated.

$2)$ On November $30,2016,$ S & S Inc. received $$15,000$ in dividends from a long$-$term investment.

$3)$ S & S Inc. borrowed $$200,000$ at $10\%.$ This debt matures on October $31,2022.$

$4)$ On December $31,2016,$ S & S Inc. wrote off from its books an old, fully depreciated warehouse, which had a cost of $$75,000$ in $1998($no longer of economic value$).$

$5)$ Also on December $31,2016,$ S & S Inc. paid dividends on Class A shares.

$6)$ The only other transactions that modified the Buildings and Equipment accounts were acquisitions made in October $2016.$

$7)$ Cash, short$-$term investments, and bank loan are considered cash and cash equivalents by the Company.

$8)$ The balance of accounts payable arises from purchases of merchandise.

$9)$ Sale of a patent for $$20,000$ with a cost of $$60,000$ and accumulated amortization of $$40,000.$

Work to be performed.

a$)$ Prepare a statement of cash flows for S & S Inc. for the year ended December $31,2016.$

Adopt the direct method of presentation. $($Demonstrate your calculations$)$