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	$	19,500
Accounts Receivable		9,750
Inventory		23,400
Property and Equipment, Net		39,000
	$	91,650
Liabilities and Stockholders Equity
Accounts Payable	$	19,500
Notes Payable, Long-Term		9,750
Common Stock		39,000
Retained Earnings		23,400
	$	91,650

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2016
Sales	$	37,700
Cost of Goods Sold		8,700
Salaries and Wage Expense		8,700
Interest Expense		2,900
Other Expenses		1,450
Net Income	$	15,950

Additional data:

Sales were $37,700; $23,200 in cash was received from customers.

Bought new land for cash, $29,000.

Sold other land for its book value of $14,500.

Paid $2,900 principal on the long-term note payable and $2,900 in interest.

Issued new shares of stock for $29,000 cash.

Cash dividends of $4,800 were declared and paid to stockholders.

Paid $16,900 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.

Extra Surplus Company

Balance Sheet at December 31st

	2016	2015

Drop down options for left side:

Accounts payable, Accounts receivable, cash, common stock, cost of goods sold, interest expense, inventory, notes payable-long term, other expenses, property and equipment, retained earnings, sales, wage expense

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

Statement of Cash Flows

Year Ended December 31, 2016

Cash Flows from Operating Activities: Net Cash used in operating Activites/ Net cash provided by operating Activities?: Cash Flows from Investing Activities: Net cash used in investing activities/ net cash provided by investing activities?: Cash Flows from Financing Activities: Net cash used in financing activites/ Net cash provided by financing activities?: Net decrease in cash during the year/ net increase in cash during the year?: Cash and Cash Equivalents, end of period

Drop down option for empty cells on left side:

Cash collected from customers, cash paid for interest, cash paid to employees, cash paid to suppliers of inventory, payment of cash dividends, payments on long-term debt, proceeds from issuing common stock, proceeds from issuing common stock, proceeds from sale of land, purchase of land