The 2016 and 2015 comparative balance sheets and 2016 income statement of Lombardi Supply Corp. follow:

Lombardi Supply had no noncash investing and financing transactions during 2016. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.
Requirements
1. Prepare the 2016 statement of cash flows, formatting operating activities by using the indirect method.
2. How will what you learned in this problem help you evaluate an investment?

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A1 Lombardi Supply Corp. Comparative Balance Sheets December 31, 2016 Increase 2015 (Decrease) 4 Current assets: 5Cash and cash equivalents 6 Accounts receivable 7 Inventories 8 Prepaid expenses 17900 14,000 3,900 56,70060,0003.300% 770052,200 (14,500) 00(2,200) 1,700 Plant assets: 10 Land 11Equipment, net 12 Total assets 3 Current liabilities: 4 Accounts payable 15 Salary payable 16Other accrued liabilities 17 Long-term liabilitiess 18 Notes payable 19 Stockholders' equity 0Common stock no-par 21 Retained earnings 22 Total liabilities and stockholders' equity 23 2,10047,000 62,100 49,300 12,800 S 245,200 201,500 $ 43,700 69,100 $ 35,500 31,300 4,200 8,900 22,80024,1001,300) 30,000 21,100 52,00038.000 14,000 88,200 64,00024,200 S 245,200 201,500 43,700 16,700 23000 A1 Lombardi Supply Corp Income Statement Year Ended December 31, 2016 2 Revenues Sales revenue $ 438,000 4 Expenses 5 Cost of goods sold 6 Salary expense 7 Depreciation expense $ 185,100 76,9 16,100 50,1 24.6 Otheroperatingexpense 91-Interest expense 10 Income tax expense 29,300 121 Netincome 13