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 $ 13,500 Accounts Receivable 6,750 Inventory 16,200 Property and Equipment, Net 27,000 $ 63,450 Liabilities and Stockholders Equity Accounts Payable $ 13,500 Notes Payable, Long-Term 6,750 Common Stock 27,000 Retained Earnings 16,200 $ 63,450 Extra Surplus Company Income Statement For the Year Ended December 31, 2016 Sales $ 22,100 Cost of Goods Sold 5,100 Salaries and Wage Expense 5,100 Interest Expense 1,700 Other Expenses 850 Net Income $ 9,350 Additional data: Sales were $22,100; $13,600 in cash was received from customers. Bought new land for cash, $17,000. Sold other land for its book value of $8,500. Paid $1,700 principal on the long-term note payable and $1,700 in interest. Issued new shares of stock for $17,000 cash. Cash dividends of $2,400 were declared and paid to stockholders. Paid $9,700 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.)