The 2016 comparative balance sheet and income statement of Smithson Pet Supply, Inc, are: Click the icon to view the comparative balance sheet.) EB (Click the icon to view the income statement.) mithson Pet Supply, Inc., had no noncash investing and financing transactions during 2016. During the year, Smithson Pet Supply, Inc., made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock transactions. 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 in Smithson Pet Supply, Inc.? Requirement 1. Prepare the 2016 statement of cash flows, formatting operating activities by the indirect methocd. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Smithson Pet Supply, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash flows from operating activities: 70500 Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 4100 Decrease in accounts receivable (1400)) Cash flows from operating activities: Net income 70500 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in accrued liabilities 4100 (1400) 1900 (4400) 2700 2900 Net cash provided by (used for) operating activities Cash flows from investing activities: Acquisition of equipment 73400 53000 Increase in accrued liabilities 2700 2900 Net cash provided by (used for) operating activities 73400 Cash flows from investing activities: Acquisition of equipment 53000 Acquisition of land Net cash provided by (used for) investing activities Cash flows from financing activities: Payment of notes payable Payment of dividends Proceeds from issuance of common stock Net cash provided by (used for) financing activities Nat increase (decreasel in cash Net cash provided by (used for) investing activities Cash flows from financing activities: Payment of notes payable Payment of dividends Proceeds from issuance of common stock Net cash provided by (used for) financing activities Net increase (decrease) in cash: Cash balance, December 31, 2015 Cash balance, December 31, 2016 1 of 1 (1 complete) i Data Table Smitnson Pet Suppiy, inc. Income Statement Year Ended December 31, 2016 Revenues: Sales revenue S 215,000 7,800 Interest revenue Total revenues s 222,800 Expenses: Cost of goods sold Salaries expense Depreciation expense Other operating expenses interest expense Income tax expense s 70,400 .100 4,100 10,100 11,300 29,300 152,300 ents Total expenses S 70,500 Net Income Print Done 2019-Se (1) hapter 11 1 of 1 (1 complete) Data Table Accounts receivable 25,500 26,900(1,400) 91,300 89,400 1,900 Fixed Assets 90,000 60,0 Land 29,700 3,600 S 266,300 $ 233,000 S33,300 Equipment, net 53,000 49,400 Total Assets Current Liabilities: S 30,600S 35,000 (4,400) 2,70o 77000 98,000 (21.000) 88,600 64,600 24,000 9,4007,40032.000 Accounts payable Accrued liabilities 30,70028,000 Long-Term Liabilities: Notes payable Stockholders'Equity Common stock Retained earnings $ 266,300 233,000$33 Total Liabilities and Stockholders' Equity Print Done 5,867 19