A (Click the icon to view the additional information.) The 2018 income statement and comparative balance sheet of Granite Rock, Inc. follow: (Click the icon to view the income statement.) (Click the icon to view the comparative balance sheet.) Read the requirements. Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty, do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Granite Rock, Inc Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Nel Cash Provided by (Used for) Operating Activities Granite Rock, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 435,000 205,200 Cost of Goods Sold Gross Profit 229,800 Operating Expenses: Salaries Expense 72,400 Depreciation ExpensePlant Assets 14,900 11,000 Other Operating Expenses 98,300 Total Operating Expenses Operating Income Other Income and (Expenses): 131,500 Interest Revenue 8,900 (21,700) Interest Expense Total Other Income and (Expenses) (12,800) Net Income Before Income Taxes 118,700 Income Tax Expense 19,500 Total Other Income and (Expenses) (12,800) Net Income Before Income Taxes 118,700 19,500 Income Tax Expense $ 99,200 Net Income Granite Rock, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash 26,300 $ 15,300 Accounts Receivable 26,800 25,000 Merchandise Inventory 79,200 91,400 Long-term Assets: Land 35,200 7,000 Plant Assets 117,700 (16,800) 107,220 (14,520) Accumulated DepreciationPlant Assets $ 268,400 $ 231,400 Total Assets Liabilities Current Liabilities: Accounts Payable 35,800 $ 30,800 28,100 30,600 Accrued Liabilities Long-term Liabilities: Notes Payable 78,000 100,000 Total Liabilities 141,900 161,400 Stockholders' Equity Common Stock, no par 89,000 64,600 5,400 Retained Earnings 37,500 Total Stockholders' Equity 126,500 70,000 268,400 $ 231,400 Total Liabilities and Stockholders' Equity 1. Prepare the 2018 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? Additionally, Granite Rock purchased land of $28,200 by financing it 100% with long-term notes payable during 2018. 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 $0. The cost and accumulated depreciation of the disposed asset was $12,620. The plant acquisition was for cash. Cash Flows from Investing Activities: 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, 2017 Cash Balance, December 31, 2018 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? O A. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments B. Learn how to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay their debts and dividends C. Both A and B D. None of the above