Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. empty; do not select a label or enter a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 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. Rolling Hills, 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 Requirement 2. How will what you leared in this problem help you evaluate an investment? A. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments B. Learn how to predict future cash flows, e Aluate management decisions, and predict the ability of the company to pay their debts OC. Both A and B OD. None of the above Rolling Hills, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,900 $ 15,700 26,500 25,400 Accounts Receivable Merchandise Inventory Long-term Assets: 79,800 91,500 Land Plant Assets 35,100 14,000 124,840 (18,940) 114,650 (17,950) Accumulated Depreciation-Plant Assets Total Assets $ 274,200 $ 243,300 Liabilities Current Liabilities: Accounts Payable $ 35,700 $ 30,400 Accrued Liabilities 28,700 30,300 Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 Depreciation Expense Plant Assets 14,400 10,200 Other Operating Expenses Total Operating Expenses 102,000 128,800 Operating Income Other Income and (Expenses): Interest Revenue 8,700 (21,100) Interest Expense (12,400) Total Other Income and (Expenses) Net Income Before Income Taxes 116,400 20,000 Income Tax Expense $ 96,400 Net Income 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment? Rolling Hills, Inc. Comparative Balance Sheet December 31, 2018 and 2017 3 2018 2017 Assets Current Assets: Cash $ 26,900 $ 15,700 26,500 25,400 Accounts Receivable Merchandise Inventory Long-term Assets: Land 79,800 91,500 35,100 14,000 Plant Assets 124,840 Accumulated Depreciation-Plant Assets 114,650 (17,950) (18,940) Total Assets $ 274,200 $ 243,300 Liabilities Current Liabilities: $ 35,700 $ 30,400 Accounts Payable Accrued Liabilities Long-term Liabilities: 28,700 30,300 Accounts Payable 35,700 $ 30,400 Accrued Liabilities 28,700 30,300 Long-term Liabilities: Notes Payable 79,000 108,000 Total Liabilities 143,400 168,700 Stockholders' Equity Common Stock, no par 88,900 41,900 64,500 10,100 Retained Earnings Total Stockholders' Equity 130,800 74,600 Total Liabilities and Stockholders' Equity 274,200 $ 243,300 Requirement 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 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. Rolling Hills, 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 Requirement 2. How will what you leared in this problem help you evaluate an investment? A. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments B. Learn how to predict future cash flows, e Aluate management decisions, and predict the ability of the company to pay their debts OC. Both A and B OD. None of the above Rolling Hills, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,900 $ 15,700 26,500 25,400 Accounts Receivable Merchandise Inventory Long-term Assets: 79,800 91,500 Land Plant Assets 35,100 14,000 124,840 (18,940) 114,650 (17,950) Accumulated Depreciation-Plant Assets Total Assets $ 274,200 $ 243,300 Liabilities Current Liabilities: Accounts Payable $ 35,700 $ 30,400 Accrued Liabilities 28,700 30,300 Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 Depreciation Expense Plant Assets 14,400 10,200 Other Operating Expenses Total Operating Expenses 102,000 128,800 Operating Income Other Income and (Expenses): Interest Revenue 8,700 (21,100) Interest Expense (12,400) Total Other Income and (Expenses) Net Income Before Income Taxes 116,400 20,000 Income Tax Expense $ 96,400 Net Income 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment? Rolling Hills, Inc. Comparative Balance Sheet December 31, 2018 and 2017 3 2018 2017 Assets Current Assets: Cash $ 26,900 $ 15,700 26,500 25,400 Accounts Receivable Merchandise Inventory Long-term Assets: Land 79,800 91,500 35,100 14,000 Plant Assets 124,840 Accumulated Depreciation-Plant Assets 114,650 (17,950) (18,940) Total Assets $ 274,200 $ 243,300 Liabilities Current Liabilities: $ 35,700 $ 30,400 Accounts Payable Accrued Liabilities Long-term Liabilities: 28,700 30,300 Accounts Payable 35,700 $ 30,400 Accrued Liabilities 28,700 30,300 Long-term Liabilities: Notes Payable 79,000 108,000 Total Liabilities 143,400 168,700 Stockholders' Equity Common Stock, no par 88,900 41,900 64,500 10,100 Retained Earnings Total Stockholders' Equity 130,800 74,600 Total Liabilities and Stockholders' Equity 274,200 $ 243,300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AML Auditing Understanding Foreign Exchange What Every AML KYC Auditor Should Know

Authors: Bob Walsh

1st Edition

1539576248, 978-1539576242

More Books

Students also viewed these Accounting questions