The 2016 income statement and comparative balance sheet of Grand Tree, Inc. follow: (Click the icon to view the income statement.) Click the icon to view the comparative balance sheet.) Additionally, Grand Tree purchased land of $25,500 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. Grand Tree, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash Flows from Operating Activities: Receipts: Collections From Customers Interest Received Total Cash Receipts Payments: To Suppliers for Operating Expenses To Suppliers for Inventory Total Cash Payments Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: The 2016 income statement and comparative balance sheet of Grand Tree, Inc. follow: Click the icon to view the income statement.) Click the icon to view the comparative balance sheet.) Additionally, Grand Tree purchased land of $25,500 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 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 Requirement 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 to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay their debts and dividends C. Both A and B OD. None of the above Grand Tree, Inc. Income Statement Year Ended December 31, 2016 Sales Revenue $ 442,000 206,200 Cost of Goods Sold Gross Profit 235,800 Operating Expenses: Salaries Expense $ 75,400 Depreciation ExpensePlant Assets 14,300 Other Operating Expenses 10,800 Total Operating Expenses 100,500 Operating Income 135,300 Other Revenues and (Expenses): Interest Revenue 8,000 Interest Expense (21,500) (13,500) Total Other Revenues and (Expenses) Net Income Before Income Taxes 121,800 20,000 Income Tax Expense $ 101,800 Net Income 2015 15,300 25,700 91,400 107,330 (18,630) 9,000 Grand Tree, Inc. Comparative Balance Sheet December 31, 2016 and 2015 2016 Assets Current Assets: Cash $ 26,600 $ Accounts Receivable 26,300 Merchandise Inventory 79,000 Long-term Assets: Plant Assets 118,260 Accumulated Depreciation Plant Assets (21,360) 34,500 Land $ Total Assets 263,300 $ Liabilities Current Liabilities: Accounts Payable $ 35,200 $ Accrued Liabilities 28,700 Long-term Liabilities: Notes Payable 74,000 Total Liabilities 137,900 Stockholders' Equity Common Stock, no par 88,300 Retained Earnings 37,100 Total Stockholders' Equity 125,400 $ Total Liabilities and Stockholders' Equity 263,300 $ 230,100 30,100 30,600 102,000 162,700 64,000 3,400 67,400 230,100