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 15,000 7,500 18,000 30,000 S 70,500 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings 15,000 7,500 30.000 18,000 $ 70,500 Extra Surplus Company Income Statement For the Year Ended December 31, 2016 Sales - $ 20.000 Cost of Goods Sold Salaries and Wage Expense 6.000 Interest Expense Other Expenses 6.000 2.000 Net Income $ 11,000 Additional data Sales were $20,000 $10000 in cash was received from oustomers Bought new land for cash. $20.000 Sold other land for its book value of $10.000 Paid 2.000 principal on the long-term note payable and $2.000 in interest Issued new shares of stock for $20.000 cash Cash dividends of $3.000 were declared and paid to stockholders Paid $11.500 on 3oounts payable No inventory purchases were made other expenses were incurred on account wages were paioase Other expenses were on account Required: 2. Prepare 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