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.
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?