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 $18,000 9,000 21,600 36,000 $ 84,600 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings $18,000 9,000 36,000 21,600 $84,600 Extra Surplus Company Income Statement For the Year Ended December 31, 2016 Sales Cost of Goods Sold Salaries and Wage Expense Interest Expense Other Expenses $ 33,800 7,800 7,800 2,600 1,300 Net Income $ 14,300 Additional data Sales were $33,800; $20,800 in cash was received from customers. Bought new land for cash, $26,000 Sold other land for its book value of $13,000 Paid $2,600 principal on the long-term note payable and $2,600 in interest. Issued new shares of stock for $26,000 cash. Cash dividends of $4,200 were declared and paid to stockholders. Paid $15,100 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. 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 collected from customers Cash paid for interest Cash paid to employees Cash paid for interest 20,800 (15,100) (7,800) (2,600) et cash provided by operating activities (4,700) Cash Flows from Investing Activities: Proceeds from sale of land Purchase of land et cash provided by investing activities Cash Flows from Financing Activities Payment of cash dividends Payments on long-term debt Proceeds from issuing common stock et cash provided by financing activities et decrease in cash during the year Cash and cash equivalents, end of period Required: a. Prepare a balance sheet at December 31, 2016 EXTRA SURPLUS COMPANY Balance Sheet at December 31 2016 2015 Cash Accounts Receivable Inventory Property and Equipment Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings