The 2016 comparative balance sheet and income statement of Linder-man Garden Supply, Inc., follow:

Linder-man Garden Supply, Inc., had no noncash investing and financing transactions during 2016. During the year, Linder-man Garden Supply, Inc., made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock transactions.

Requirements
1. Prepare the 2016 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 in Linder-man Garden Supply, Inc.?

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Linderman Garden Supply, Inc. Comparative Balance Sheet December 31, 2016 and 2015 INCREASE (DECREASE) 2016 2016 Current Assets: Cash and Cash Equivalents $ 5,300 $ 6,500 || $ (1,200) (1,400) 1,800 26,500 Accounts Receivable 25,100 91,500 Inventory Fixed Assets: 89,700 61,100 49,000 $266,300 $232,800 S 33,500 89,700 28,600 Land Equipment, Net Total Assets 54,700 5,700 Current Liabilities: Accounts Payable Accrued Liabilities $ 30,900 30,600 $ 35,100 28,400 $ (4,200) 2,200 Long-Term Liabilities: Notes Payable Stockholders' Equity: Common Stock (26,000) 73,000 99,000 88,500 43,300 64,600 23,900 5,700 37,600 $232,800 $ 33,500 Retained Earnings Total Liabilities and Stockholders' Equity $266,300 Linderman Garden Supply, Inc. Income Statement Year Ended December 31, 2016 Revenues: Sales Revenue $216,000 8,300 Interest Revenue Total Revenues $224,300 Expenses: Cost of Goods Sold $ 71,000 27,300 4,700 10,200 Salaries Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses 11,900 29,800 154,900 Net Income $ 69,400