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	$	16,000
Accounts Receivable		8,000
Inventory		19,200
Property and Equipment, Net		32,000
	$	75,200
Liabilities and Stockholders Equity
Accounts Payable	$	16,000
Notes Payable, Long-Term		8,000
Common Stock		32,000
Retained Earnings		19,200
	$	75,200

--------------------------------------------------------------------------

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2016
Sales	$	28,600
Cost of Goods Sold		6,600
Salaries and Wage Expense		6,600
Interest Expense		2,200
Other Expenses		1,100
Net Income	$	12,100

Additional data:

Sales were $28,600; $17,600 in cash was received from customers.

Bought new land for cash, $22,000.

Sold other land for its book value of $11,000.

Paid $2,200 principal on the long-term note payable and $2,200 in interest.

Issued new shares of stock for $22,000 cash.

Cash dividends of $3,400 were declared and paid to stockholders.

Paid $12,700 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.

Assignment: 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 Cash Accounts Receivable Inventory Property and Equipment 16,000 8,000 19,200 32,000 75,200 16,000 8,000 32,000 19,200 75,200 9,800 $ 19,000 19,200 43,000 91,000 $ Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings 3,300 $ 5,800 54,000 27,900 91,000 $