Requirement 1. Prepare the 2024 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.

	Cobbs Hill, Inc.
	Statement of Cash Flows
	Year Ended December 31, 2024
	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, 2023
	Cash Balance, December 31, 2024

	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?

A.

Learn how to predict future cash flows, evaluate management decisions, and predict the ability of the company to pay its debts and dividends

B.

Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments

C.

Both A and B

D.

None of the above

Cobbs Hill, Inc.
Income Statement
Year Ended December 31, 2024
Net Sales Revenue		$444,000
Cost of Goods Sold		200,200
Gross Profit		243,800
Operating Expenses:
Salaries Expense	$70,400
Depreciation ExpensePlant Assets	15,000
Other Operating Expenses	10,300
Total Operating Expenses		95,700
Operating Income		148,100
Other Income and (Expenses):
Interest Revenue	8,600
Interest Expense	(21,400)
Total Other Income and (Expenses)		(12,800)
Net Income Before Income Taxes		135,300
Income Tax Expense		19,200
Net Income		$116,100

Cobbs Hill, Inc.
Comparative Balance Sheet
December 31, 2024 and 2023
	2024	2023
Assets
Current Assets:
Cash	$26,100	$15,000
Accounts Receivable	26,600	25,500
Merchandise Inventory	79,200	92,000
Long-term Assets:
Land	34,900	9,000
Plant Assets	117,010	109,310
Accumulated DepreciationPlant Assets	(20,110)	(15,610)
Total Assets	$263,700	$235,200
Liabilities
Current Liabilities:
Accounts Payable	$35,100	$29,900
Accrued Liabilities	28,400	30,800
Long-term Liabilities:
Notes Payable	75,000	104,000
Total Liabilities	138,500	164,700
Stockholders' Equity
Common Stock, no par	88,800	65,000
Retained Earnings	36,400	5,500
Total Stockholders' Equity	125,200	70,500
Total Liabilities and Stockholders' Equity	$263,700	$235,200