[SOLVED] Use the Lombardi Supply Corp. data from

Use the Lombardi Supply Corp. data from P12-71B. Requirements 1. Prepare the 2016 statement of cash flows by using the direct method. 2. How will what you learned in this problem help you evaluate an investment? From P12-71B The 2016 and 2015 comparative balance sheets and 2016 income statement of Lombardi Supply Corp. follow:

Lombardi Supply had no noncash investing and ï¬nancing transactions during 2016. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.

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A1 Lombardi Supply Corp. Comparative Balance Sheets 1 December 31, 2016 Increase (Decrease) 2015 4 Current assets: Cash and cash equivalents Accounts receivable $ 17,900 $ 56,700 37,700 1,700 14,000 $ 3,900 (3,300) 60,000 52,200 (14,500) (2,200) 3,900 7 Inventories 8 Prepaid expenses 9 Plant assets: Land 10 11 12 Total assets 13 Current liabilities: 14 22,100 49,300 $ 245,200 $ 201,500 $ 43,700 69,100 62,100 47,000 12,800 Equipment, net $ 35,500 $ 30,000 22,800 31,300 $ 4,200 21,100 8,900 (1,300) 24,100 Accounts payable Salary payable Other accrued liabilities 15 16 17 Long-term liabilities: 18 19 Stockholders' equity: 20 21 22 Total liabilities and Stockholders' equity 23 Notes payable 52,000 38,000 14,000 Common stock, no-par Retained earnings 64,000 23,000 $ 245,200 $ 201,500 $ 43,700 88,200 16,700 24,200 |(6,300) A1 Lombardi Supply Corp. Income Statement Year Ended December 31, 2016 1 2 Revenues: $ 438,000 Sales revenue 4 Expenses: Cost of goods sold Salary expense Depreciation expense 8. 3 $ 185,100 76,900 16,100 50,100 24,600 29,300 Other operating expense 9. Interest expense 10 Income tax expense Total expenses 11 12 Net income 13 382,100 $ 55,900

Question: Use the Lombardi Supply Corp. data from

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