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	$	20,000
Accounts Receivable		10,000
Inventory		24,000
Property and Equipment, Net		40,000
	$	94,000
Liabilities and Stockholders Equity
Accounts Payable	$	20,000
Notes Payable, Long-Term		10,000
Common Stock		40,000
Retained Earnings		24,000
	$	94,000

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2016
Sales	$	39,000
Cost of Goods Sold		9,000
Salaries and Wage Expense		9,000
Interest Expense		3,000
Other Expenses		1,500
Net Income	$	16,500

Additional data:

• Sales were $39,000; $24,000 in cash was received from customers.
• Bought new land for cash, $30,000.
• Sold other land for its book value of $15,000.
• Paid $3,000 principal on the long-term note payable and $3,000 in interest.
• Issued new shares of stock for $30,000 cash.
• Cash dividends of $5,000 were declared and paid to stockholders.
• Paid $17,500 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.

b. Prepare the statement of cash flows using the direct method. (Enter any deductions and cash outflows as a negative value.)

EXTRA SURPLUS COMPANY Balance Sheet at December 31 2016 2015 $ 0 $ 0 $ 0 $ 0 EXTRA SURPLUS COMPANY Statement of Cash Flows Year End December 31, 2016 Cash Flows from Operating Activities: 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: Cash and cash equivalents, end of period $ 0