Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.)

Complete the statement one section at a time, beginning with the cash flows from operating activities.

Requirement 2. How will what you learned in this problem help you evaluate an investment?

Sweet Valley, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities 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 Cash Balance, December 31, 2017 Cash Balance, December 31, 2018 Non-cash Investing and Financing Activities: Total Non-cash Investing and Financing Activities X Data Table Sweet Valley, Inc. X Data Table Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Sweet Valley, Inc. Assets Income Statement Current Assets Year Ended December 31, 2018 $ 15,400 Cash 26,300 $ 445,000 Net Sales Revenue Accounts Receivable 26,400 25,100 203,200 91,300 Merchandise Inventory 79,300 Cost of Goods Sold Gross Profit Long-term Assets: 241,800 Operating Expenses 34,900 Land 14,000 Salaries Expense $ Plant Assets 77,400 115,790 108,330 (19,890) (18,630) Depreciation Expense-Plant Assets 14,500 Accumulated Depreciation-Plant Assets 10,100 262,800 $ 235,500 Other Operating Expenses Total Assets 102,000 Total Operating Expenses Liabilities Operating Income 139,800 Current Liabilities: Other Income and (Expenses): Accounts Payable $ 35,600 $ 30,100 Interest Revenue 8,200 28,900 30,800 Accrued Liabilities (21,100) Long-term Liabilities: Interest Expense 78,000 105,000 (12,900) Notes Payable Total Other Income and (Expenses) Total Liabilities 142,500 165,900 Net Income Before Income Taxes 126,900 Stockholders' Equity 19,400 Income Tax Expense Common Stock, no par 64,800 88,200 107,500 Net Income 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity Print Done 262,800 $ 235,500 Total Liabilities and Stockholders' Equity Print Done O A. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O B. Learn how to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay their debts and dividends C. Both A and B O D. None of the above - X i More Info Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $13,240. The plant acquisition was for cash Print Done