The Statement of Cash Flows 8 P16-41B Preparing the statement of cash flows-indirect method with non-cash transactions Learning Objective 2 The 2016 income statement and comparative balance sheet of McDonald, Inc.follow:erCas by Op. Act. $132,000 MCDONALD, INC. Income Statement Year Ended December 31, 2016 MCDONALD, INC. Comparative Balance Sheet December 31, 2016 and 2015 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 443,000 203.20 39,800 2016 2015 Assets Current Assets 78,400 14,800 Cash Accounts Receivable Merchandise Inventory 26,200 15,100 5,700 91,800 26,500 79,800 Salaries Expense Long-term Assets Other Operating Expenses Total Operating Expenses 10,300 Plant Assets 117,240 109.480 103,500 136,300 Accumulated Depreciation--Plant Assets 21,340) (19,780 Land Operating Income Other Revenues and (Expenses) 34,500 4,000 Total Assets 5 262,900 236,300 8,300 Interest Revenue nterest Expense Total Other Revenues and (Expenses) (21,800) Liabilities (13,500) 122,800 9,200 S 103,600 Current Liabilties Net income Before Income Taxes ncome Tax Expense Net Income Accounts Payable Accrued Liablities 35,000 $ 30,000 28,300 0,900 Long-term Liablities 05,000 5,000 38,300165,900 Notes Payable Total Liablities Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilties and Stockholders Equity 88,800 35,800 124,600 S 262,900 64.300 6, 100 70,400 236,300