The 2016 income statement and comparative balance sheet of Granite Rock, Inc. follow:

Additionally, Granite Rock purchased land of $24,100 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 $10,500. The plant acquisition was for cash. Requirements 1. Prepare the 20162016 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 20162016 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.

Granite Rock, Inc. Income Statement Year Ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses $ 436,000 200,200 235,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses $77,400 14,600 10,400 102,400 Operating Income Other Revenues and (Expenses): 133,400 Interest Revenue Interest Expense Total Other Revenues and (Expenses) 8,000 (21.200) Net Income Before Income Taxes Income Tax Expense Net Income (13,200) 120,200 19,400 $ 100,800