The 2005 comparative balance sheet and income statement of Get Wired, Inc., follow on the next page.

Get Wired, Inc., had no noncash investing and financing transactions during 2005. During the year, there were no sales of land or equipment, no issuances of notes payable, no retirements of stock, and no treasury stock transactions.

Requirements 

1. Prepare the 2005 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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GET WIRED, INC. Comparative Balance Sheet December 31, Increase 2005 2004 (Decrease) Current assets: Cash and cash equivalents $ 26,700 $ 15,300 $ 11,400 Accounts receivable Inventories Plant assets: Land Equipment, net 25,300 26,900 (1,600) 91,800 79,800 12,000 69,000 60,000 9,000 53,500 49,400 4,100 Total assets $266,300 $231,400 $34,900 Current liabilities: Accounts payable $ 30,900 $ 35,400 $ (4,500) Accrued liabilities Long-term liabilities: Notes payable 30,600 28,600 2,000 75,000 100,000 (25,000) Stockholders' equity: Common stock 88,300 64,700 23,600 Retained earnings 41,500 Total liabilities and stockholders' equity $266,300 2,700 $231,400 38,800 $34.900