The 2016 income statement and comparative balance sheet of McKnight, Inc. follow:

Additionally, McKnight purchased land of $27,800 by financing it 100% with long-term notes payable during 2016. 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 $10,200. The plant acquisition was for cash.
Requirements
1. Prepare the 2016 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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MCKNIGHT, INC. Income Statement Year Ended December 31, 2016 Sales Revenue Cost of Goods Soild Gross Profit Operating Expenses 441,000 202,200 238,800 Salaries Expense Depreciation Expense -Plant Assets Other Operating Expenses Total Operating Expenses 5 76,400 14,200 10,500 101,100 Operating Income Other Revenues and (Expenses) 37,700 Interest Revenue interest Expense Total Other Revenues and (Expenses) 8,800 (21,600) Net Income Before Income Taxes Income Tax Expense Net Income (12,800) 24,900 9,500 $105.400 MCKNIGHT, INC. Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 Assets Current Anets Accounts Reaaivable Merthandse Iventory 26400 15,100 26700 25,200 79,70091,600 Long-term Asss Mant Ave 18,510 110310 (15,610 7,000 $ 266,500 $233,600 (19610 34,800 Land Total Adsets Cunrent Lablies Accounts Poyaible Accrued Liabilitie 3,100 30,500 30,100 28 200 Long-teem Lablites 73,000 136,300 Notes Payable 06,000 166,600 Total Labilioe Stockholders' Equity Common Ssock no par Retained Earnings Total Stockholders' Eqity Total Lisbilirbies and Stockholders Equity 88.100 42,100 2300 30,200 6500 5233,600 64,700 67,000