The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow:
The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow: Click the icon to view the income statement.) Click the icon to view the comparative balance sheet.) CHER (Click the icon to view the additional information.) Read the requirements. 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. Rolling Hills, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income 96400 Adjustments to Reconcile Net Income to Net Cash 14400 Provided by (Used for) Operating Activities: Depreciation Expense-Plant Assets Decrease in Merchandise Inventory Increase in Accounts Payable 11700 5300 Increase in Accounts Receivable (1100) (1600) Decrease in Accrued Liabilities Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Acquisition of Land by Issuing Long-term Notes Payable Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Acquisition of Land by Issuing Long-term Notes Payable 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 of the company to pay their debts and dividends O B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O C. Both A and B OD. None of the above x I Data table (Click the icon to view the additional information.) ad the requirements. Ronny mus, Mg. > Data table 2017 15,700 25,400 91,500 14,000 114,650 (17.950) 243,300 Comparative Balance Sheet December 31, 2018 and 2017 2018 Assets Current Assets: Cash $ 26,900 S Accounts Receivable 26,500 Merchandise Inventory 79,800 Long-term Assets: Land 35,100 Plant Assets 124,840 (18,940) Accumulated DepreciationPlant Assets $ 274,200 $ Total Assets Liabilities Current Liabilities: Accounts Payable $ 35,700 S Accrued Liabilities 28,700 Long-term Liabilities: Notes Payable 79,000 Total Liabilities 143,400 Stockholders' Equity Common Stock, no par 88,900 Retained Earnings 41,900 130,800 Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity 274,200 $ Rolling Hills, Inc. 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 s 77,400 Depreciation ExpensePlant Assets 14,400 Other Operating Expenses 10,200 Total Operating Expenses 102,000 Operating Income 128,800 Other Income and (Expenses): Interest Revenue 8,700 Interest Expense (21,100) Total Other Income and (Expenses) (12.400) Net Income Before Income Taxes 116,400 Income Tax Expense 20,000 $ Net Income 96,400 30,400 30,300 108,000 168,700 64,500 10,100 74,600 243,300 Print Done
