The 2015 income statement and comparative balance sheet of Rolling Hills, Inc. follow:

Additionally, Rolling Hills purchased land of $ 23,600 by financing it 100% with long- term notes payable during 2015. 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 the accumulated depreciation of the disposed ­asset was $ 11,560.

ROLLING HILLS, INC.
Comparative Balance Sheet
December 31, 2015 and 2014

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Requirements
1. Prepare the 2015 statement of cash flows, formatting operating activities by the indirect method.
2. How will what you learned in this problem help you evaluate aninvestment?

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ROLLING HILLS, INC. Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Proft Operating Expenses: 436,000 202,200 233,800 Salaries Expense Depreciation Expense Plant Assets Other Operating Expenses Total Operating Expenses 78,400 14 400 10,200 103,000 130,800 Operating Income Other Revenues and (Expenses): Interest Revenue Interest Expense Total Other Revenues and (Expenses 8,000 (21,900) Net Income Before Income Taxes Income Tax Expense Net Income (13,900) 116,900 19,100 S 97,800 2015 2014 Assets 26,400 15,900 Accounts Receivable Accumulated Depreciation-Plant Assets $ 271,400 233,800 Liabilities 35,500 30,600 101,000 142,100 Stockholders' Equity Total Stockholders Equity Total Liabilities and Stockholders' Equity 71,500 $ 271.400 S 233,800