P16-34A Preparing the statement of cash flows-indirect method with non-cash transactions The 2015 income statement and comparative balance sheet of Rolling Hills, Indc. follow: ROLLING HILLS, INC. Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 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