The Extra Surplus Company's Balance Sheet for December 31, 2015 and the Income Statement for 2016 are shown below. Extra Surplus Company Balance Sheet December 31, 2015 Assets Cash Accounts Receivable Inventory Property and Equipment, Net 10,500 5,250 12,800 21,000 $ 49,350 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings 10,500 5,250 21,000 12.000 $ 49,350 Extra Surplus Company Income Statement For the Year Ended December 31, 2016 Sales Cost of Goods Sold S 14,300 Salaries and Wage Expense 3,300 Interest Expense 3.300 Other Expenses 1.100 550 Net Income $ 6,050 Additional data Sales were $14,300:58,800 in cash was received from customers Bought new land for cash. 511.000 Sold other and for its book value of $5,500. Paid $1,100 principal on the long-term note payable and 51.100 in interest Issued new shares of stook for $11.000 cash Cash dividends of $1.200 were declared and paid to stockholders Paid 50.100 on accounts payable No inventory purchases were made other expenses were incurred on account A wages were paid in cash Other expenses were on con Extra Surplus Company Income Statement For the Year Ended December 31, 2016 Sales $ 14,300 Cost of Goods Sold 3,300 Salaries and Wage Expense 3,300 Interest Expense 1,100 Other Expenses 550 Net Income $ 6,050 Additional data: Sales were $14,300, $8,800 in cash was received from customers. Bought new land for cash, $11,000. Sold other land for its book value of $5.500 Paid $1,100 principal on the long-term note payable and $1,100 in interest. Issued new shares of stock for $11,000 cash. Cash dividends of $1,200 were declared and paid to stockholders. Paid $6,100 on accounts payable. No inventory purchases were made, other expenses were incurred on account. All wages were paid in cash. Other expenses were on account. Required: a. Prepare a balance sheet at December 31, 2016 EXTRA SURPLUS COMPANY Balance Sheet at December 31 2016 2015 b. Prepare the statement of cash flows using the direct method. (Enter any deductions and cash outflows as a negative value.) EXTRA SURPLUS COMPANY Statement of Cash Flows Year End December 31, 2016 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Cash and cash equivalents, end of period