The 2018 comparative balance sheet and income statement of Waterman Pet Supply, Inc, are EEB (Cick the icon to view the comparative balance sheet) Waterman Pet Supply, Inc, had no noncash investing and financing transactions during 2018, During the year, Waterman Pet Supply, Inc., sold no land or equipment, issued no notes payable, retired no stock, and had no treasury stock transactions ( Cick the icon to view the income statement ) Read the tequirements Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted) Waterman Pet Supply, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Net income ct: 0 Adjustments to reconcile net Income to net cash provided by operating activities i Comparative Balance Sheet ing ar ent, is Waterman Pet Supply, Inc. Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 (Decrease) Current Assets: Cash and cash equivalents Accounts receivable Inventory $ 6,500 5,600900 25,000 26,500 (1.500) 1.900 ,60089,70 Fixed Assets 89,600 60,100 29 500 4 300 $ 266,200 S 231.100 S35,100 Land 53,50049.200 Equipment, net Total Assets Print Done Comparative Balance Sheet Fixed Assets: 60,10029500 4,300 Land 89,600 53,50049,200 Equipment, net 266,200 S 231,100 S 35,100 Total Assets Current Liabilities: Accounts payable Accrued liabilities 30,500|$ 35,000|$ 30,800 28,000 (4.500)| 2,800 Long-Term Liabilities: Notes payable 76000 102000 (26000) Stockholders'Equity 88,50064.100 40,4002000 266.200|$ 231.100|$ 24.400 38,400 351001| Common stock Retained earnings $ Total Liabilities and Stockholders' Equity Print Done Income Statement Waterman Pet Supply, Inc. Income Statement Year Ended December 31, 2018 Revenues S 216,000 8,600 Sales revenue Interest revenue Total revenues S 224,600 Expenses Cost of goods sold Salaries expense Depreciation expense Other operating expenses Interest expense S 70,000 27.200 4.300 10.300 11 400 Print Done Income Statement sh Revenues Sales revenue 216,000 8,600 rac Interest revenue Total revenues S 224,600 Expenses Cost of goods sold Salaries expense Depreciation expense Other operating expenses Interest expense Income tax expense S 70,000 27,200 4,300 10,300 11,400 29.400 152 600 Total expenses S 72.000 Net Income Print Done Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities using the indirect method 2. How will what you leamed in this problem help you evaluate an investment in Waterman Pet Supply, Inc.? Print Done