The 2016 and 2015 comparative balance sheets and 2016 income statement of Outdoor Supply Corp. follow:

Outdoor Supply Corp.
Comparative Balance Sheets
		December 31,		Increase
		2016	2015	(Decrease)
Current assets:
Cash and cash equivalents		$65,300	$5,000	$60,300
Accounts receivable		47,700	42,500	5,200
Inventories		58,600	57,400	1,200
Prepaid expenses		1,700	4,800	(3,100)
Plant assets:
Land		59,000	21,900	37,100
Equipment, net		53,700	49,400	4,300
Total assets		$286,000	$181,000	$105,000
Current liabilities:
Accounts payable		$35,200	$27,800	$7,400
Salary payable		26,000	15,100	10,900
Other accrued liabilities		20,600	23,700	(3,100)
Long-term liabilities:
Notes payable		65,000	35,000	30,000
Stockholders' equity:
Common stock, no-par		89,100	66,400	22,700
Retained earnings		50,100	13,000	37,100
Total liabilities and stockholders' equity		$286,000	$181,000	$105,000

Outdoor Supply Corp.
Income Statement
Year Ended December 31, 2016
	Revenues:
		Sales revenue		$447,000
	Expenses:
		Cost of goods sold	$187,000
		Salary expense	76,200
		Depreciation expense	17,400
		Other operating expense	49,700
		Interest expense	24,700
		Income tax expense	28,600
		Total expenses		383,600
	Net income			$63,400

Outdoor Supply had no noncash investing and financing transactions during 2016. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.

Requirements 1. Prepare the 2016 statement of cash flows, formatting operating activities by using the indirect method.

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 companies prepare the statement of cash flows in order to understand the meaning of cash flows from the 3 basic categories of business activities

(c) both A and B

(d) none of the above