DIRECT METHOD

The 2016 income statement and comparative balance sheet of One Stop, Inc. follow: 3 Click the icon to view the income statement.) E (Click the icon to view the comparative balance sheet.) Additionally, One Stop purchased land of $21,500 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 accumulated depreciation of the disposed asset was $14,100. The plant acquisition was for cash. 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? Requirement 1. Prepare the 2016 Statement of Cash Flows by the direct method. (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. One Stop, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash Flows from Operating Activities: Receipts: Total Cash Receipts Payments: Total Cash Payments Alat rach Druidad hull load farl nantina Activities Total Cash Payments Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2015 Cash Balance, December 31, 2016 Non-cash Investing and Financing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2015 Cash Balance, December 31, 2016 Non-cash Investing and Financing Activities: Total Non-cash Investing and Financing Activities Requirement 2. How will what you learned in this problem help you evaluate an investment? O A. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O B. Learn how to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay their debts and dividends OC. Both A and B OD. None of the above Data Table 1 er, there were no sales of land, no retirements of stock, and no treasury stock transactions. Ap Data Table December 31, 2016 and 2015 2016 2015 Assets Current Assets: One Stop, Inc. Income Statement Year Ended December 31, 2016 Cash $ 26,700 $ 15,300 Accounts Receivable 25,400 Sales Revenue $ 435,000 201,200 26,800 79,500 91,400 Cost of Goods Sold Merchandise Inventory Long-term Assets: Plant Assets 233,800 117,180 Accumulated DepreciationPlant Assets (15,280) 35,500 104,380 (14,680) 14,000 $ 71,400 Land $ 270,400 $ 14,700 10,900 Total Assets 235,800 Gross Profit Operating Expenses: Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue Liabilities 97,000 136,800 Current Liabilities: Accounts Payable Accrued Liabilities $ 35,700 $ 28,900 30,800 30,900 9,000 (21,500) Long-term Liabilities: Interest Expense Notes Payable 77,000 103,000 (12,500) Total Liabilities 141,600 164,700 Total Other Revenues and (Expenses) Net Income Before Income Taxes Stockholders' Equity 124,300 19,600 Income Tax Expense Common Stock, no par 88,700 40,100 64,100 7,000 $ 104,700 Net Income Retained Earnings Total Stockholders' Equity 128,800 71,100 $ Print Done 235,800 270,400 $ Total Liabilities and Stockholders' Equity Print Done