The comparative balance sheet of Pelican Joe Industries Inc. for December 31, 2016 and 2015, is as follows:

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$491.00	$157.00
4	Accounts receivable (net)	285.00	196.00
5	Inventories	173.00	109.00
6	Land	401.00	451.00
7	Equipment	220.00	173.00
8	Accumulated depreciation-equipment	(62.00)	(29.00)
9	Total assets	$1,508.00	$1,057.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$173.00	$157.00
12	Dividends payable	35.00
13	Common stock, $10 par	98.00	50.00
14	Paid-in capital: Excess of issue price over parcommon stock	255.00	122.00
15	Retained earnings	947.00	728.00
16	Total liabilities and stockholders equity	$1,508.00	$1,057.00

The following additional information is taken from the records:

1.	Land was sold for $122.
2.	Equipment was acquired for cash.
3.	There were no disposals of equipment during the year.
4.	The common stock was issued for cash.
5.	There was a $321 credit to Retained Earnings for net income.
6.	There was an $102 debit to Retained Earnings for cash dividends declared.

Required:

A.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.

B.

Was the net cash flow from operations for Pelican Joe Industries Inc. more or less than net income? What is the source of this difference?

Labels and Amount Descriptions

Amortization of intangible assetsCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockCash received from sale of landDecember 31, 2016Decrease in accounts payableDecrease in accounts receivableDecrease in cashDecrease in inventoriesDepreciationFor the Year Ended December 31, 2016Gain on sale of landIncrease in accounts payableIncrease in accounts receivableIncrease in cashIncrease in inventoriesLoss on sale of landNet cash flow from operating activitiesNet cash flow used for operating activitiesNet cash flow from investing activitiesNet cash flow used for investing activitiesNet cash flow from financing activitiesNet cash flow used for financing activitiesNet incomeNet loss

Pelican Joe Industries Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6	Changes in current operating assets and liabilities:
7
8
9
10
11	Cash flows from investing activities:
12
13
14
15	Cash flows from financing activities:
16
17
18
19
20	Cash at the beginning of the year
21	Cash at the end of the year