P16-34A Preparing the statement of cash flows indirect method witlh non-cash transactions The 2015 income statement and comparative balance sheet of Rolling Hills, Inc. follow: ROLLING HILLS, INC. Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses s 436,000 202,200 233,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses $ 78,400 14,400 10.200 103,000 130,800 Operating Income Other Revenues and (Expenses) Interest Revenue Interest Expense Total Other Revenues and (Expenses) 8,000 (21.900) Net income Before Income Taxes Income Tax Expense Net Income (13,900) 116,900 19.100 $ 97,800 Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current Assets Cash Accounts Recelvable Merchandse Inventory S 26,40015,900 26,700 25,500 91,700 79,800 Long-tem Assets Plant Assets Accumulated Depreciation-Plant Assets20,780)(17.940 Land 124 680107,640 11,000 $ 271.400 233,800 34,600 Total Assets Liabilities Current Liablities Accounts Payabie Accrued Lisblities S 35,500S30.600 28,60030,700 Long-tem Liabilites Notes Pyabie 78.000 101,000 Total Labiities 142,100 162,300 Stockholders Equity Common Stock Rerained Eatmings Tota Stockholders Equity Total Labiltes and Stockhoiders Equity 88.80064900 6,600 71,500 271400 $233,800 40,500 29.300 Additionally, Rolling Hills purchased land of$23.600 by financing it 100% with long -term notes payable during 2015. During the yeas, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant anet was disposed of for $0. The cost and the accumulated depreclation of the disposed asset was $11.560. Requirements 1. Prepare the 2015 statement of cash lows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment