The income statement and balance sheet of All Wired, Inc., follows:

Additionally, All Wired purchased land of $24,500 by financing it 100% with long-term notes payable during 2016. During the year, there were no sales of land or equipment, no additional issuances of notes payable, no retirements of stocks, and no treasury stock transactions.

Required:

(a) Prepare the 2016 statement of cash flows, formatting operating activities by the indirect method.

(b) Calculate the amount of dividends All Wired, Inc. paid using the information given.

Transcribed Image Text:

All Wired, Inc. Income statement Year Ended December 31, 2016 Revenues: Service Revenue Interest revenue Total revenue Expenses: Cost of goods sold Salary Expense Depreciation Expense Other operating expense Interest expense Income tax expense Net income $438,000 $8,500 $446,500 $209,200 $72,400 $14,500 $10,000 $21,500 $ 19,400 $347,000 $99,500