P-F:14-34A Preparing the statement of cash flows-indirect method with non-cash transactions The 2024 income statement and comparative balance sheet of Rolling Hills, Inc. follow: $ 440,000 209,200 230,800 ROLLING HILLS, INC. Income Statement Year Ended December 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense $77,400 Depreciation Expense Plant Assets 14,400 Other Operating Expenses 10,200 Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 8,700 Interest Expense (21,100) Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income 102,000 128,800 (12,400) 116,400 20,000 $ 96,400 ROLLING HILLS, INC. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Long-term Assets: $ 26,900 26,500 79,800 $ 15,700 25,400 91,500 Land Plant Assets Accumulated Depreciation Plant Assets Total Assets 35,100 124,840 (18,940) 5 274,200 14,000 114,650 (17.950) $ 243,300 Liabilities $ 35,700 $ 30,400 30,300 28,700 Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable Total Liabilities 79,000 108,000 168,700 143,400 Stockholders' Equity Common Stock, no par 88,900 Retained Earnings 41,900 Total Stockholders' Equity 130,800 Total Liabilities and Stockholders' Equity $ 274,200 64,500 10,100 74,600 $ 243,300 P-F:14A-37A Preparing the statement of cash flowsdirect method Use the Rolling Hills, Inc. data from Problem P-F:14-34A. Requirements 1. Prepare the 2024 statement of cash flows by the direct method. 2. How will what you learned in this problem help you evaluate an investment