The 2015 income statement and comparative balance sheet of All Wired, Inc. follow:

Additionally, All Wired purchased land of $ 24,500 by financing it 100% with long-term notes payable during 2015. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $ 0. The cost and the accumulated depreciation of the disposed asset was $ 12,060.

Requirements

1. Prepare the 2015 statement of cash flows, formatting operating activities by the indirect method.

2. How will what you learned in this problem help you evaluate an investment?

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ALL WIRED, INC. Inçome Statement Year Ended December 31, 2015 Salos Revenue $ 438,000 Cost of Goods Sold 209,200 Gross Profit 228,800 Operating Expenses: Salaries Expense $ 72,400 Depreciation Expense Flant Assets 14,500 Other Operating Expenses 10,000 Total Operating Expenses 96,900 Operating Income 131,900 Other Revenues and (Expenses): Interest Revenue 8,500 Interest Expense (21,500) Total Other Revenues and (Expenses) (13,000) Net Income Before Income Taxes 118,900 Income Tax Expense 19,400 Net Income $ 99,500 ALL WIRED, INC. Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current Assets: Cash $ 26,700 $ 15,600 Accounts Receivable 26,500 25,300 Merchandise Inventory 79,900 91,900 Long-term Assets: Plant Assets 123,480 108,840 Accumulated Depreciation-Plant Assets (20,580) (18,140) Land 35,500 11,000 Total Assets S 271,500 S 234,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,500 Accrued Liabilities 28,900 30,600 Long-term Liabilities: Notes Payable 77,000 103,000 Total Liabilities 141,500 164,100 Stockholders' Equity Common Stock 88,200 64,300 Retained Earnings 41,800 6,100 Total Stockholders' Equity 130,000 70,400 Total Liabilities and Stockholders' Equity $ 271,500 $ 234,500