The 2016 income statement and comparative balance sheet of Seasons?, Inc.? follow:

Additionally, Seasons purchased land of $21,200 by financing it? 100% with? long-term notes payable during 2016. 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 accumulated depreciation of the disposed asset was $10,500. The plant acquisition was for cash.

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?

Prepare the 2016 statement of cash? flows, formatting operating activities by the indirect method

Cash Flows from Operating Activities:
	Net Income
	Adjustments to Reconcile Net Income to Net Cash
	Provided by (Used for) Operating Activities:
	Net Cash Provided by (Used for) Operating Activities

	Cash Flows from Investing Activities:
	Net Cash Provided by (Used for) Investing Activities

	Cash Flows from Financing Activities:
	Net Cash Provided by (Used for) Financing Activities

	Net Increase (Decrease) in Cash
	Cash Balance, December 31, 2015
	Cash Balance, December 31, 2016

	Non-cash Investing and Financing Activities:
	Total Non-cash Investing and Financing Activities

Requirement 2. How will what you learned in this problem help you evaluate an? investment?

A.

Learn how operating? activities, investing? activities, and financing activities generate cash receipts and cash payments

B.

Learn how to predict future cash? flows, evaluate management? decisions, and predict the ability of the company to pay their debts and dividends

C.

Both A and B

D.

None of the above