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. 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: Depreciation ExpensePlant Assets 107,500 14,500 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 Requirement 2. How will what you learned in this problem help you evaluate an investment? 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 O C. Both A and B OD. None of the above i Data Table - X Data Table - X Sweet Valley, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Sweet Valley, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 445,000 203,200 Current Assets: Cash Accounts Receivable Merchandise Inventory Long-term Assets: 26,300 $ 26,400 79,300 15,400 25,100 91,300 241,800 $ Land 34,900 115,790 (19,890) 262,800 $ Plant Assets 14,000 108,330 (18,630) 235,500 Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue 77,400 14,500 10,100 Accumulated DepreciationPlant Assets 102,000 $ Total Assets 139,800 Liabilities $ Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: 35,600 $ 28,900 30,100 30,800 8,200 (21,100) Interest Expense (12,900) 78,000 105,000 Notes Payable Total Liabilities Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense 126,900 19,400 142,500 165,900 $ 107,500 Stockholders' Equity Net Income Common Stock, no par 88,200 32,100 64.800 4,800 Retained Earnings Print Done Total Stockholders' Equity 120,300 69,600 235,500 $ 262,800 $ Total Liabilities and Stockholders' Equity Print Done * 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
