The 2024 income statement and comparative balance sheet of CanGrow, Inc, follow Back the icon to view the income statement EIB (Click the con to view the company balance sheet) 1 (Cick the icon to view the additional information) Read the requirements CanGrow, Inc. Income Statement Year Ended December 31, 2024 Net Sales Revenue $ 441,000 Cost of Goods Sold 201,200 Gross Profit 239,800 Operating Expenses: Salaries Expense $ 75,400 Depreciation Expense-Plant Assets 15,000 10,600 Other Operating Expenses 101,000 Total Operating Expenses Operating Income Other Income and (Expenses): 138,800 Interest Revenue 8.100 Interest Expense (21,200) Taha (13.1001 Total Other Income and (Expenses) (13,100) Net Income Before Income Taxes 125,700 Income Tax Expense 19,900 Net Income $ 105,800 CanGrow, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Assets Current Assets: Cash $ 26,600 $ 15,600 26,800 25,700 Accounts Receivable Merchandise Inventory Long-term Assets: 79,300 91,900 Land 34,800 8,000 Plant Assets 115,410 111,310 (15,610) Accumulated Depreciation-Plant Assets (16,510) Total Assets $ 266,400 $ 236,900 Liabilities Current Liabilities: Accounts Payable $ 35,200 $ 30,300 Accrued Liabilities 28,000 30,100 Long-term Liabilities: 74,000 104,000 Notes Payable Total Liabilities 137,200 164,400 Stockholders' Equity Common Stock, no par 64,700 88,100 41,100 Retained Earnings 7,800 Total Stockholders' Equity 129,200 72,500 $ Total Liabilities and Stockholders' Equity 266,400 $ 236,900 More info Additionally, CanGrow purchased land of $26,800 by financing it 100% with long-term notes payable during 2024. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $14,100. The plant acquisition was for cash. C Print Done Requirements 1. Prepare the 2024 statement of cash flows by the direct method. 2. How will what you learned in this problem help you evaluate an investment? CanGrow, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Receipts: Total Cash Receipts Payments: Total Cash Payments 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 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? O A. Learn how to predict tuture cash flows, evaluate management decisions, and predict the ability of the company to pay its debts and dividende B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O C. Both A and B D. None of the above