Use the Get Wired. Inc., data from Problem 16-45B.

Requirements 

1. Prepare the 2005 statement of cash flows by the direct method.

Follow the statement format given in Exhibit 16A-3.

2. How will what you learned in this problem help you evaluate an investment? 

Exhibit 16A-3

Problem 16-45B

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.

ANCHOR CORPORATION Statement of Cash Flows Year Ended December 31, 2008 Cash flows from operating activities: Receipts: Collections from customers Interest received Dividends received Total cash receipts Payments: To suppliers To employees For interest For income tax (In thousands) $269 12 9 $290 $(135) (56) (15) (14) (220) 70 Total cash payments Net cash provided by operating activities Cash flows from investing activities: Acquisition of plant assets Cash receipts from sale of plant assets Net cash used for investing activities Cash flows from financing activities: Acquisition of plant assets Cash receipts from sale of plant assets Net cash used for investing activities Cash flows from financing activities: Cash receipts from issuance of common stock Cash receipts from issuance of notes payable Payment of note payable Payment of dividends Net cash provided by financing activities Net decrease in cash $(310) 50 (260) $(310) 50 (260) $ 100 90 (10) (10) 170 Cash balance, December 31, 2007 Cash balance, December 31, 2008 $ (20) 42 $ 22