Statement of Cash Flows (Direct Method) The Towne Company's income statement and comparative balance sheets as of December 31 of 2016 and 2015 follow: TOWNE COMPANY Income Statement For the Year Ended December 31, 2016 Service Fees Earned Dividend and Interest Income $317,000 14,000 $331,000 Wages and Other Operating Expenses $285,000 Depreciation Expense 55,000 Franchise Amortization Expense 10,000 Loss on Sale of Equipment 7,000 Gain on Sale of Investments Net Loss (17,000) 340,000 $(9,000) Assets TOWNE COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Cash $43,000 $33,000 Accounts Receivable 13,000 18,000 Interest Receivable 4,000 Prepaid Expenses 16,000 10,000 Long-term Investments-Available for Sale 70,000