The 2016 income statement and comparative balance sheet of All Wired, Inc. follow: E: (Click the icon to view the income statement.) : (Click the icon to view the comparative balance sheet.) Additionally, All Wired purchased land of $24,700 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 $14, 100. The plant acquisition was for cash. Requirements 1. Prepare the 2016 statement of cash flows by the direct method. 2. How will what you learned in this problem help you evaluate an investment? All Wired, Inc. Income Statement Year Ended December 31, 2016 Sales Revenue $ 435,000 207,200 227,800 $ 75,400 Cost of Goods Sold Gross Profit Operating Expenses Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue 14,900 10,700 101,000 126,800 9,000 (22,000) Interest Expense (13,000) Total Other Revenues and (Expenses) Net Income Before Income Taxes Income Tax Expense 113,800 19,400 $ Net Income 94,400 All Wired, Inc. Comparative Balance Sheet December 31, 2016 and 2015 2016 Assets 2015 Current Assets: Cash $ Accounts Receivable 26,700 $ 26,900 79,200 15,500 25,100 91,000 Merchandise Inventory Long-term Assets Plant Assets Accumulated Depreciation Plant Assets 111,380 (15,480) 34,700 110,380 (14,680) 10,000 Land $ 263,400 $ Total Assets 237,300 Liabilities Current Liabilities: $ $ 35,800 $ 28,600 30,300 30,300 Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable Total Liabilities 77,000 107,000 141,400 167,600 Stockholders' Equity Common Stock, no par Retained Earnings 88,900 33,100 64,100 5,600 Total Stockholders' Equity 122,000 69,700 $ Total Liabilities and Stockholders' Equity 263,400 $ 237,300 Complete the statement one section at a time, beginning with the cash flows from operating activities. All Wired, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash Flows from Operating Activities: Receipts: Collections From Customers V Interest Received Total Cash Receipts Payments: Total Cash Payments Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2015 Cash Balance, December 31, 2016 Non-cash Investing and Financing Activities: Total Non-cash Investing and Financing Activities