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The Extra Surplus Company's Balance Sheet for December 31, 2015 and the Income Statement for 2016 are shown below.

Extra Surplus Company
Balance Sheet
December 31, 2015
Assets
Cash	$	11,500
Accounts Receivable		5,750
Inventory		13,800
Property and Equipment, Net		23,000
	$	54,050
Liabilities and Stockholders Equity
Accounts Payable	$	11,500
Notes Payable, Long-Term		5,750
Common Stock		23,000
Retained Earnings		13,800
	$	54,050

Extra Surplus Company
Income Statement
For the Year Ended December 31, 2016
Sales	$	16,900
Cost of Goods Sold		3,900
Salaries and Wage Expense		3,900
Interest Expense		1,300
Other Expenses		650
Net Income	$	7,150

Additional data:

Sales were $16,900; $10,400 in cash was received from customers.

Bought new land for cash, $13,000.

Sold other land for its book value of $6,500.

Paid $1,300 principal on the long-term note payable and $1,300 in interest.

Issued new shares of stock for $13,000 cash.

Cash dividends of $1,600 were declared and paid to stockholders.

Paid $7,300 on accounts payable.

No inventory purchases were made; other expenses were incurred on account.

All wages were paid in cash.

Other expenses were on account.

Required:

a.	Prepare a balance sheet at December 31, 2016.

	EXTRA SURPLUS COMPANY Balance Sheet at December 31 2016 2015

b.	Prepare the statement of cash flows using the direct method. (Enter any deductions and cash outflows as a negative value.)

	EXTRA SURPLUS COMPANY Statement of Cash Flows Year End December 31, 2016 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Cash and cash equivalents, end of period

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