Do the investing and financing activities as well

PRACTICE PROBLEM 2 Below are the comparative balance sheets for 2017 and 2016 and the income for The Wrong Company and the income statement for 2017 The Wrong Company Balance Sheets As at December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Less: Allowance for doubtful accounts Short-term investments Inventory Land Buildings and equipment Less: Accumulated depreciation $42 88 (15) 40 $ 30 85 (10) 550 (115) $715 60 400 (75) $575 $ 28 2 $ 35 5 Liabilities and Stockholders' Equity Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Common stock Retained earnings 12 30 160 100 376 300 135 $715 90 $575 The Wrong Company Income Statement For the year ended December 31, 2017 $380 $130 45 Revenues Sales revenue Expenses Cost of goods sold Salaries expense Bad debts expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income law 300 S 80 Additional information: 1. A parcel of land was sold during the year. 2. The common stock of Microsoft was purchased for $25,000 as a short-term investment not classified as a cash equivalent. 3. On January 1, 2017, bonds were sold at their $60 face value. Required: Prepare the statement of cash flows of The Wrong Company for the year ended December 31, 2017. Present cash flows from operating activities using the direct method