The 2016 income statement and comparative balance sheet of Get Wired, Inc. follow: (Click the icon to view the income statement.)(Click the icon to view the comparative balance sheet.) Additionally, Get Wired purchased land of $23,400 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 $11,570. 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? Requirement 1. Prepare the 2016 Statement of Cash Flows by the direct method. (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Get Wired, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash Flows from Operating Activities: Receipts: Collections From Customers Total Cash Receipts Payments: The 2016 income statement and comparative balance sheet of Get Wired, Inc. follow: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Additionally, Get Wired purchased land of $23,400 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 $11,570. 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? Total Cash Receipts Payments: Total Cash Payments Net Cash Provided by (Used for) Operating Activities Data table Year Ended December 31, 2016 $ Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue Interest Expense Total Other Revenues and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income 70,400 14,000 10,700 8,000 (21,800) $ 443,000 201,200 241,800 95,100 146,700 (13,800) 132,900 19,800 $ 113,100 Comparative Balance Sheet December 31, 2016 and 2015 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Long-term Assets: Plant Assets Accumulated Depreciation-Plant Assets Land Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: $ $ $ 2016 26,700 $ 26,400 79,000 115,010 (17,110) 34,400 264,400 $ 34,900 $ 28,300 2015 15,000 25,600 91,800 111,380 (14,680) 11,000 240,100 30,800 30,500 Long-term Assets: Plant Assets Accumulated Depreciation-Plant Assets Land Total Assets Liabilities Current Liabilities: Stockholders' Equity Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable Total Liabilities Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 115,010 (17,110) 34,400 264,400 $ 34,900 $ 28,300 72,000 135,200 88,700 40,500 129,200 264,400 $ 111,380 (14,680) 11,000 240,100 30,800 30,500 100,000 161,300 64,000 14,800 78,800 240,100
