The 2018 income statement and comparative balance sheet of McKnight, Inc.

McKnight, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses S 436,000 205,200 230,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses S 71,400 14,200 10,700 96,300 Operating Income Other Income and (Expenses) 134,500 Interest Revenue Interest Expense Total Other Income and (Expenses) 8,300 (21,900) et Income Before Income Taxes ncome Tax Expense Net Income (13,600) 120,900 19,900 S 101,000 2018 2017 Assets Current Assets Cash Accounts Receivable Merchandise Inventory $ 26,500 $ 15,100 25,000 91,300 26,900 79,900 Long-term Assets Land Plant Assets Accumulated Depreciation-Plant Assets 10,000 105,180 16,440) (15,480) $ 271,600 $ 231,100 35,400 119,340 Total Assets Liabilities Current Liabilities Accounts Payable $ 35,200 $30,800 30,000 Accrued Liabilities 28,900 Long-term Liabilities 72,000 101,000 Notes Payable Total Liabilities 136,100 161,800 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 64,600 4,700 69,300 $ 271,600 $ 231,100 89,000 46,500 135,500 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? MCnnignt, 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) 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 to predict future cash flows, evaluate management decisions, and predict the ability ofthe company to pay their debts and di dends O B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O C. Both A and B O D. None of the above hoose from any list or enter any numher in the innut fields and then continue to the next guestion McKnight, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses S 436,000 205,200 230,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses S 71,400 14,200 10,700 96,300 Operating Income Other Income and (Expenses) 134,500 Interest Revenue Interest Expense Total Other Income and (Expenses) 8,300 (21,900) et Income Before Income Taxes ncome Tax Expense Net Income (13,600) 120,900 19,900 S 101,000 2018 2017 Assets Current Assets Cash Accounts Receivable Merchandise Inventory $ 26,500 $ 15,100 25,000 91,300 26,900 79,900 Long-term Assets Land Plant Assets Accumulated Depreciation-Plant Assets 10,000 105,180 16,440) (15,480) $ 271,600 $ 231,100 35,400 119,340 Total Assets Liabilities Current Liabilities Accounts Payable $ 35,200 $30,800 30,000 Accrued Liabilities 28,900 Long-term Liabilities 72,000 101,000 Notes Payable Total Liabilities 136,100 161,800 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 64,600 4,700 69,300 $ 271,600 $ 231,100 89,000 46,500 135,500 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? MCnnignt, 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) 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 to predict future cash flows, evaluate management decisions, and predict the ability ofthe company to pay their debts and di dends O B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O C. Both A and B O D. None of the above hoose from any list or enter any numher in the innut fields and then continue to the next guestion