1.	Prepare the 2024 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?

Net Sales Revenue $ 437,000 Cost of Goods Sold 203,200 Gross Profit 233,800 Operating Expenses: Salaries Expense $ 72,400 Depreciation ExpensePlant Assets 14,300 Other Operating Expenses 10,600 97,300 136,500 Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 8,200 (21,000) Interest Expense (12,800) Total Other Income and (Expenses) Net Income Before Income Taxes 123,700 Income Tax Expense 19,200 $ 104,500 Net Income Liabilities Current Liabilities: Accounts Payable $ 35,500 $ 30,600 Accrued Liabilities 27,900 30,100 Long-term Liabilities: Notes Payable 72,000 103,000 Total Liabilities 135,400 163,700 Stockholders' Equity Common Stock, no par 88,500 44,700 64,900 9,100 Retained Earnings Total Stockholders' Equity 133,200 74,000 $ 268,600 $ 237,700 Total Liabilities and Stockholders' Equity Digital Subscriptions, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income 104,500 Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation ExpensePlant Assets 14,300 Increase in Accounts Receivable (1,200) Decrease in Merchandise Inventory 12,600 Increase in Accounts Payable 4,900 Decrease in Accrued Liabilities (2,200) Net Cash Provided by (Used for) Operatina Activities 28,400 24,400 Cash Flows from Investing Activities: Acquisition of Land by Issuing Long-term Notes Payable Cash Payment for Acquisition of Plant Assets Depreciation ExpensePlant Assets 9,160 14,300 (47,860) 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, 2023 Cash Balance, December 31, 2024 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 to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay its debts and dividends B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments C. Both A and B D. None of the above Net Sales Revenue $ 437,000 Cost of Goods Sold 203,200 Gross Profit 233,800 Operating Expenses: Salaries Expense $ 72,400 Depreciation ExpensePlant Assets 14,300 Other Operating Expenses 10,600 97,300 136,500 Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 8,200 (21,000) Interest Expense (12,800) Total Other Income and (Expenses) Net Income Before Income Taxes 123,700 Income Tax Expense 19,200 $ 104,500 Net Income Liabilities Current Liabilities: Accounts Payable $ 35,500 $ 30,600 Accrued Liabilities 27,900 30,100 Long-term Liabilities: Notes Payable 72,000 103,000 Total Liabilities 135,400 163,700 Stockholders' Equity Common Stock, no par 88,500 44,700 64,900 9,100 Retained Earnings Total Stockholders' Equity 133,200 74,000 $ 268,600 $ 237,700 Total Liabilities and Stockholders' Equity Digital Subscriptions, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income 104,500 Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation ExpensePlant Assets 14,300 Increase in Accounts Receivable (1,200) Decrease in Merchandise Inventory 12,600 Increase in Accounts Payable 4,900 Decrease in Accrued Liabilities (2,200) Net Cash Provided by (Used for) Operatina Activities 28,400 24,400 Cash Flows from Investing Activities: Acquisition of Land by Issuing Long-term Notes Payable Cash Payment for Acquisition of Plant Assets Depreciation ExpensePlant Assets 9,160 14,300 (47,860) 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, 2023 Cash Balance, December 31, 2024 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 to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay its debts and dividends B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments C. Both A and B D. None of the above