The 2024 income statement and comparative balance sheet of McKnight, Inc. follow: (Click the icon to view the income statement.) (Click the icon to view the comparative balance sheet.) (Click the icon to view the additional information.) Read the requirements. 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. McKnight, Inc. Statement of Cash Flows Year Ended December 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit McKnight, Inc. Income Statement Year Ended December 31, 2024 $ 439,000 206,200 232,800 Operating Expenses: Salaries Expense 70,400 Depreciation Expense-Plant Assets 14,900 Other Operating Expenses 10,700 96,000 Total Operating Expenses Operating Income 136,800 Other Income and (Expenses) Interest Revenue Interest Expense Total Other Income and (Expenses) 8,600 (21,900) (13,300) 123,500 Net Income Before Income Taxes Income Tax Expense Net Income 19,000 $ 104,500 Current Assets: Cash Accounts Receivable McKnight, Inc. Comparative Balance Sheet December 31, 2024 and 2023 Merchandise Inventory Assets 2024 2023 27,000 $ 15,500 26,700 25,600 79,200 91,600 Long-term Assets: Land 34,900 8,000 Plant Assets 120,070 111,310 Accumulated Depreciation-Plant Assets (19,170) (15,610) 268,700 $ 236,400 Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable Total Liabilities $ 35,200 $ 30,900 27,900 30,900 77,000 104,000 140,100 165,800 Stockholders' Equity Common Stock, no par 88,400 64,100 40,200 6,500 Retained Earnings 128,600 70,600 Total Stockholders' Equity 268,700 $ 236,400 Total Liabilities and Stockholders' Equity More info Additionally, McKnight purchased land of $26,900 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 $11,340. The plant acquisition was for cash. 1. Prepare the 2024 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?