The Statement of Cash F tB Preparing the statement of cash flows-indirect method with Learning Objective non-cash transactions The 2018 income statement and comparative balance sheet of Swet Valley, Inc 1. Net Cash Prox. by Op Act $136,300 WEET VALLEY, INC Income Statement Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 445,000 203,200 241,800 Ur ( Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses 77,400 14,500 10,100 102000 139,800 Operating Income Other Income and (Expenses) Interest Revenue Interest Expense Total Other Income and (Expenses) a,200 (21,100) Net Income Before Income Taxes Income Tax Expense Net Income (12,900) 126,900 19,400 107,500 1s r 16 SWEET VALLEY, INC Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets s 26,300 15,400 Cash Accounts Receivable Merchandise Inventory 26,400 79,300 25,100 91,300 Long-term Assets 34,900 Land Plant Assets Accumulated Depreciation-Plant Assets 14,000 115,790 108,330 18,630 $ 262,800 235,500 (19,890) Total Assets Liabilities Current Liabilities: Accounts Payable Accrued Liabilities s 35,600 30,100 30,800 28,900 Notes Payable Total Liabilities 78,000 142,500 105,000 165,900 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity 64,800 4,800 69,600 $ 262,800 S235,500 88,200 32,100 120,300 Additionally, Sweet Valley purchased land of $20,900 by financing it 100 % with long term notes payable during 2018. During the year, there were no sales of land, no redirements of stock, and no treasury stock transactions. A plant asset was disposed o for $0. The cost and the Plant asset was acquired for cash. accumulated depreciation of the disposed asset wa Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activies indirect method. 2. How will what you learned in this problem help you evaluate an investment