Complete the statement one section at a time, beginning with the cash flows from operating activities.
| | Grand Tree, Inc. |
| | Statement of Cash Flows |
| | Year Ended December 31, 2018        |
Grand Tree, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 442,000 Cost of Goods Sold 210,200 Gross Profit 231,800 Operating Expenses Salaries Expense 78,400 Depreciation Expense-Plant Assets 14,700 Other Operating Expenses 11,000 104,100 Total Operating Expenses Operating Income 127.700 Other Income and (Expenses): Interest Revenue 8,300 Interest Expense (21,300) Total Other Income and (Expenses) (13.000) Net Income Before Income Taxes 114,700 Income Tax Expense 19,400 $ 95,300 Net Income 2017 15.400 25,000 91.000 Grand Tree, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 Assets Current Assets: Cash $ 26,800 $ Accounts Receivable 26,300 Merchandise Inventory 79,400 Long-term Assets: Land 34.800 Plant Assets 120.640 Accumulated Depreciation-Plant Assets (20,740) $ Total Assets 267,200 $ Liabilities Current Liabilities: Accounts Payable $ 35,500 $ Accrued Liabilities 28,200 Long-term Liabilities: Notes Payable 74.000 Total Liabilities 137,700 Stockholders' Equity Common Stock, no par 89,000 Retained Earnings 40,500 Total Stockholders' Equity 129,500 Total Liabilities and Stockholders' Equity $ 267,200 $ 11.000 108.940 (16,240) 235.100 30.900 30,900 107.000 168.800 84.700 1.600 66,300 235,100 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: Net Cash Provided hv (Ilsed for narating Activities 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 O B. Learn how to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay their debts and dividends O C. Both A and B OD. None of the above 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. Grand Tree, 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
