The comparative statement of financial position and statement of income for NextWave Company follow.

Additional information:
1. Some of the long-term investments were sold at their carrying value. As a result, there was no gain or loss on this transaction.
2. Equipment costing $47,000 was sold for $10,500, which was $3,700 more than its net carrying amount at the time of disposal.
Required:
a. Prepare the company€™s statement of cash flows for 2016 using the indirect method.
b. Calculate the amount of cash that was paid for income taxes during 2016.
c. Determine the cash flows from operating activities using the direct method.

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NEXTWAVE COMPANY Comparative Statement of Financial Position Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable Inventory Long-term investments Property, plant, and equipment Accumulated depreciation S66,700 76,800 121,900 84,500 280,000 (79,500) $550,400 S 47,250 57,000 92,650 97,000 235,000 (70,000) $458,900 Liabilities and shareholders' equity Accounts payable Income taxes payable Bonds payable Common shares Retained earnings 52,700 12,000 100,000 230,000 155,700 $550,400 S 49,200 18,000 70,000 200,000 121,700 $458,900 NEXTWAVE COMPANY Statement of Income For the year ended December 31, 2016 $437,500 3.700 441,200 Sales revenue Gain on sale of equipment Expenses Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense $200,500 63,800 49,700 40,000 354,000 87,200 e tax expense Incon Net income