Use the Rolling Hills data from Problem.
In Problem, 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
1. Prepare the 2015 statement of cash flows by the direct method.
2. How will what you learned in this problem help you evaluate an investment?