Use the Sweet Valley data from Problem P14-41B. In Problem P14-41b The 2018 income statement and comparative

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Use the Sweet Valley data from Problem P14-41B.
In Problem P14-41b
The 2018 income statement and comparative balance sheet of Sweet Valley, Inc. follow:
SWEET VALLEY, INC.
Income Statement
Year Ended December 31, 2018
$ 445,000 Net Sales Revenue Cost of Goods Sold 203,200 Gross Profit 241,800 Operating Expenses: $ 77,400 Salaries Expens

SWEET VALLEY, INC.
Comparative Balance Sheet
December
31, 2018 and 2017

2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 9

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 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 $13,240.
Requirements
1. Prepare the 2018 statement of cash flows by the direct method.
2. How will what you learned in this problem help you evaluate an investment?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9780134486840

6th Edition

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

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