Use the McKnight, Inc. data from Problem P14-34A.
Problem P14-34A

Requirements
1. Prepare the 2016 statement of cash flows by the direct 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 Sold Gross Profit Operating Expenses: 441,000 202,200 238,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses $ 76,400 14,200 10,500 101,100 137,700 Operating Income Other Revenues and (Expenses 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) 124,900 19,500 $105,A00 MCKNIGHT, INC. Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory s 26,400 15,100 25,200 79,700 91,600 26,700 Long-term Asses: Plant Assets 118,510 110,310 Assets (19,610 (15,610) Land Tatal Assets 34,800 S266,500 233,600 Liabilities Current Liabilses Accounts Payable Accrued Liaboties 35,100 30,500 28,200 30,100 Long-term Liabilties: 73,000 136 300 Notes Payable 106,000 166,600 Total Labilses Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholdes Equity Total Lisbilies and Stocholdses' Equity266500 88,100 42.100 120,200 64,700 2,300 67,000 $233