Use the McDonald data from Problem P14-41B.
P14-41B

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?

MCDONALD, INC. Income Statement Year Ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 443,000 203,200 239,800 Salaries Expense Depreciation Expense -Plant Assets Other Operating Expenses Total Operating Expenses 78,400 14,800 10,300 103,500 136,300 Operating Income Other Rewenues and (Expenses) Interest Revenue Interest Expense Total Other Revenues and (Expenses) 8,300 (21,800) Net Income Before Income Taxes Income Tax Expense Net Income (13,500) 122,800 19,200 103,600 MCDONALD, INC. Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 Assets Current Assets Cash Accounts Receivable Merchandise Inventory 26,200 15, 100 25,700 91,800 26,500 79,800 Long-terrn Assets Plant Assets Accunulated Depreciation Pant Assets Land 117,240 109.480 (21,340) (19,780) 14,000 S 262,900 236,300 34,500 Total Assets labilities Current LLabilities Accounts Payable Accrued Liabilities 35,000 30,000 30,900 28,300 Long-term Liabilities: 75,000 138,300 Notes Payable 105,000 Total Liabidities 65,900 Stockholders' Equity Comman Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stoctholders Equity 88,800 35,800 64,300 6,100 124,600 70400 2 $ 262,900 236,300