P16A-37A Preparing the statement of cash flows-directr Ue theRling Hill data from Problem P16-34A. Requirements 1. Prepare the 2015 statement of cash flows by the direct method 2. How will what you learned in this problem help you evaluate te an investment The Statement of Cash Flows A Preparing the statement of cash flows-indirect method with p16- Learning Objective 2 non-cash transactions 2015 income statement and comparative balance sheet of Rolling 1. Net Cash Prov. by Op. Act. $125,700 ROLLING HILLS, INC Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Proft 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): 8,000 (21,900) Interest Revenue Interest Expense Total Other Revenues and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income (13,900) 116,900 19,100 S 97,800 orngre ROLLING HILLS, INC Comparative Balance Sheet December 31, 2015 and 2014 ath Edition 2015 2014 Assets s 26,400 15.90 Current Assets 26,700 Cash Accounts Receivable Merchandise Inventory 25,500 79,800 9120 The 20 Cash P 124,680 107,640 (20,780)(17.940 Long-term Assets Plant Assets 34,600 11,000 Land Total Assets $27140 23. Liabilities 35,500 5 30,600 28,600 30,70 Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities 78,000 142,100 101,000 Notes Payable 62,300 Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity 64,900 6,600 71,500 $271,400 233,800 88,800 40,500 129,300 Additionally, Rolling Hills purchased land of $23,600 by financing it 100 % wit long-term notes payable during 2015. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant aer s disposed of for $0. The cost and the accumulated depreciation of the dispoct was $11,560. Requirements 1. Prepare the 2015 statement of cash flows, formatting operating indirect method. 2. How will what you learned in this problem help you evaluate an diy