Blaylock Company provided the following partial comparative balance sheets and the income statement for 2016. Blaylock Company Comparative Balance Sheets At December 31, 2015 and 2016 1 2015 2016 2 Current assets: 3 Accounts receivable $750,000.00 $582,500.00 4 Inventories 300,000.00 320,000.00 5 Long-term assets: 6 Plant and equipment 2,200,000.00 2,150,000.00 7 Accumulated depreciation (1,200,000.00) (1,270,000.00) 8 Land 1,000,000.00 1,437,500.00 9 Current liabilities: 10 Wages payable $700,000.00 $515,000.00 11 Long-term liabilities: 12 Bonds payable 0.00 385,000.00 13 Mortgage payable 100,000.00 0.00 14 Common stock 375,000.00 375,000.00 15 Paid-in capital in excess of par 280,000.00 280,000.00 16 Retained earnings 1,825,000.00 2,325,000.00 Blaylock Company Income Statement For the Year Ended December 31, 2016 1 Revenues $3,000,000.00 2 Gain on sale of equipment 100,000.00 3 Less: Cost of goods sold (1,920,000.00) 4 Less: Depreciation expense (270,000.00) 5 Less: Interest expense (10,000.00) 6 Net income $900,000.00 Required: 1. Prepare a statement of cash flows for Blaylock for 2016. 2. Reflect on the relationship between the statement of cash flows and the change in cash. Statement of Cash Flows 1. Prepare a statement of cash flows for Blaylock for 2016. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Blaylock Company Statement of Cash Flows For the Year Ended December 31, 2016 1 Cash flows from operating activities: 2 3 Add (deduct) adjusting items: 4 5 6 7 8 9 10 Cash flows from investing activities: 11 12 13 14 15 Cash flows from financing activities: 16 17 18 19 20 Concluding Question 2. Complete the statement below regarding the relationship between the statement of cash flows and the change in cash. The sum of the cash flows must equal the change in .