Use the All Wired data from Problem.

In Problem, the 2015 income statement and comparative balance sheet of All Wired, Inc. follow:

Additionally, All Wired purchased land of $ 24,500 by financing it 100% with long-term notes payable during 2015. 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 the accumulated depreciation of the disposed asset was $ 12,060.

Requirements
1. Prepare the 2015 statement of cash flows by the direct method.
2. How will what you learned in this problem help you evaluate aninvestment?

ALL WIRED, INC. Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 438,000 209,200 228,800 Salaries Expense Depreciation Expensa lant Assets Other Operating Expenses Total Operating Expenses $ 72,400 14,500 10,000 96,900 Operating Income Other Revenues and (Expenses): 131,900 Interest Revenue Interest Expense Total Other Revenues and (Expenses) 8,500 (21,500) Net Income Before Income Taxes Income Tax Expense Net Income (13,000) 118,900 19,400 $99,500 ALL WIRED, INC Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory 26,700 15,600 26,500 79,900 25,300 91,900 Long-term Assets: Plant Assets Accumulated Depreciation-plant Assets Land 123,480 (20,580) 35,500 S 271,500 108,840 (18,140) 11,000 S 234,500 Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Liabilities 35,600 30,500 28,900 30,600 Long-term Liabilities: Notes Payable 77,000 103,000 Total Liabilities 141,500 164,100 Stockholders' Equity Common Stock Retained Eamings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 88,200 64,300 6,100 70,400 271,500 234.500 41,800 130,000