(Click the icon to view the additional information.) The 2018 income statement and comparative balance sheet of McKnight, 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. A Requirements - X Mcknight, 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: 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? Print Done Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Choose from any list or enter any number in the input fields and then continue to the next question. A Data Table - X hformation.) The 2018 income statement and comparative balance sheet of McKnight, Inc. follow: (Click the icon to view the income statement.) (Click the icon to view the comparative balance sheet.) Jash. If a box is not used in the statement, leave the box empty; do not select a label or enter a Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indire zero.) McKnight, Inc. Income Statement Year Ended December 31, 2018 Complete the statement one section at a time, beginning with the cash flows from operating activities. Net Sales Revenue $ 441,000 210,200 230,800 Mcknight, 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: Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets $ 79,400 14,800 10,500 Other Operating Expenses 104,700 126,100 Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 8,600 (21,000) Interest Expense Total Other Income and (Expenses) Net Income Before Income Taxes (12,400) 113,700 19,000 Income Tax Expense Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: $ 94,700 Net Income Print Done Choose from any list or enter any number in the input fields and then continue to the next questi Data Table McKnight, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Long-term Assets: Land 27,000 $ 26,400 79,700 15,500 25,600 91,800 Plant Assets 34,900 123,540 (20,640) 270,900 $ 10,000 104,940 (16,240) 231,600 Accumulated DepreciationPlant Assets $ Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable 35,300 $ 28,200 29,900 30,900 72,000 101.000 12 COO 104 000 Print Done Data Table Cash Accounts Receivable Merchandise Inventory Long-term Assets: 27,000 $ 26,400 79,700 15,500 25,600 91,800 Land 34,900 10,000 Plant Assets 123,540 (20,640) 104,940 (16,240) Accumulated DepreciationPlant Assets $ 270,900 $ 231,600 Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Liabilities $ 35,300 $ 28,200 29,900 30,900 Long-term Liabilities: 72,000 101,000 Notes Payable Total Liabilities 135,500 161,800 Stockholders' Equity 89,000 46,400 64,600 5,200 Common Stock, no par Retained Earnings Total Stockholders' Equity 135,400 270,900 $ 69,800 231,600 $ Total Liabilities and Stockholders' Equity Print Done (Click the icon to view the additional information.) The 2018 income statement and comparative balance sheet of McKnight, Inc. follow. E: (Click the icon to view the income statement.) Click the icon to view the comparative balance sheet.) Read the requirements. 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 to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay their debts and dividends O B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O C. Both A and B OD. None of the above Choose from any list or enter any number in the input fields and then continue to the next