2023 ROLUNG HILLS, INC. Comparative Balance Sheet December 31, 2024 and 2023 2024 Assets Current Assets Cash $ 26,900 Accounts Receivable 26,500 Merchandise Inventory 79,800 Long-term Assets Land 35,100 Plant Assets 124,840 Accumulated Depreciation-Plant Assets (18,940) Total Assets S274,200 $ 15,700 25,400 91,500 14,000 114,650 (17,950) 5 243,300 Liabilities $ 35,700 28,700 $ 30,400 30,300 Current Liabilities Accounts Payable Accrued Liabilities Long-term Liabilities Notes Payable Total Liabilities 79,000 143,400 100,000 168,700 Stockholders' Equity Common Stock, no par 88,900 Retained Earnings 41,900 Total Stockholders' Equity 130,800 Total Liabilities and Stockholders' Equity $274,200 64,500 10,100 74,600 $ 243,300 Additionally, Rolling Hills purchased land of $21,100 by financing it 100% with long- term notes payable during 2024. 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 so. The cost and the accumulated depreciation of the disposed asset was $13,410. The plant acquisition was for cash. Requirements 1. Prepare the 20124 statement of cash flows, formatting operating activities by the indired method 2. How will what you learned in this problem help you evaluate an investment? The 2024 income statement and comparative balance sheet of Rolling Hills, Inc. follow: $440,000 209,200 230,800 ROLLING HILLS, INC. Income Statement Year Ended December 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Salaries Expense $77,400 Depreciation Expense-Plant Assets 14,400 Other Operating Expenses 10,200 Total Operating Expenses Operating income Other Income and (Expenses): Interest Revenue 8,700 Interest Expense (21,100) Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income 102,000 128,800 (12,400) 116,400 20,000 $ 96,400 ROLLING HILLS, INCI Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Assets $ 26,900 26,500 79,800 $ 15,700 25,400 91,500 Current Assets Cash Accounts Receivable Merchandise Inventory Long-term Assets Land Plant Assets Accumulated Depreciation Plant Assets Total Assets 35,100 124,840 (18,940) $ 274,200 14,000 114,650 (17,950) S 243,300 Liabilities $ 35,700 28,700 $ 30,400 30,300 Current Liabilities: Accounts Payable Accrued abilities Long-term Liabilities Notes Payable Total Liabilities 79,000 143,400 108,000 168,700 Stockholders' Equity Common Stock, no par 38,900 Retained Earnings 41,900 Total Stockholders' Equity 130,800 Total Liabilities and Stockholders' Equity $274,200 64,500 10,100 74,600 $ 243,300 Additionally, Rolling Hills purchased land of $21,100 by financing it 100% with long- ferm notes payable during 2024. 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 so. The cost and the accumulated depreciation of the disposed asset was $13,410, The plant acquisition was for cash. Requirements 1. Prepare the 2024 statement of cash flows, formatting operating activities by the indirnd method 2. How will what you learned in this problem help you evaluate an investment