Use the Linder-man Garden Supply, Inc., data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items.

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