Data Table Lombardi Supply Corp. Income Statement Year Ended December 31, 2018 Revenues: Sales revenue $ 442,000 $ 185,300 76,500 14,600 Expenses Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses 50,000 24,700 29,000 380,100 $ 61,900 Net income Print Done - X Data Table Lombardi Supply Corp. Comparative Balance Sheets December 31, Increase 2018 2017 (Decrease) Current assets: Cash and cash equivalents $ 17,600 $ 5,000 $ 12,600 Accounts receivable 30,100 40,000 (9,900) Inventories 70,600 59,000 11,600 Prepaid expenses 1,600 1,000 600 Plant assets: Land 69,100 21,900 47,200 Equipment, net 64,100 49,800 14,300 $ 253,100 $ 176,700 $ 76,400 Total assets Current liabilities: Accounts payable $ 35,100 $ 27,400 $ 7,700 Salary payable 17,000 9,000 8,000 Other accrued liabilities 23 900 24 500 1600) $ - Data Table 30,100 70,600 1,600 40,000 59,000 1,000 (9,900) 11,600 600 Accounts receivable Inventories Prepaid expenses Plant assets: Land Equipment, net 69,100 64,100 21,900 49,800 47,200 14,300 $ 253,100 $ 176,700 $ 76,400 $ 35,100 $ 17,000 23,900 27,400 $ 9,000 24,500 7,700 8,000 (600) Total assets Current liabilities: Accounts payable Salary payable Other accrued liabilities Long-term liabilities: Notes payable Stockholders' equity Common stock, no-par Retained earnings 49,000 32,000 17,000 88,800 39,300 64,500 19,300 24,300 20,000 Total liabilities and stockholders' equity $ 253,100 $ 176,700 $ 76,400 The 2018 and 2017 comparative balance sheets and 2018 income statement of Lombardi Supply Corp. follow: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Lombardi Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions. Read the requirements Requirement 1. Prepare the company's 2018 statement of cash flows using the direct method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Lombardi Supply Corp. Statement of Cash Flows (Direct Method) Year Ended December 31, 2018 Cash flows from operating activities: Receipts: Payments: Total cash payments 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. 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 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 companies prepare the statement of cash flows in order to understand the meaning of cash flows from the three basic categories of business activities. O C. Both A and B OD. None of the above