Refer to the information provided in Brief Exercises 14-27, 14-28, and 14-29.

Roberts Company

Comparative Balance Sheets

At December 31, 20X1 and 20X2

20X1 20X2

Long-Term Assets:

Plant and equipment.......................$1,100,000......$1,075,000

Accumulated depreciation..................(300,000) .......(635,000)

Land....................... .....................(500,000) .......(718,750)

Required:

1. Prepare a statement of cash flows for Roberts Company for 20X2.

2. What is the relationship between the statement of cash flows and the change in cash calculated in Brief Exercise 14-26?