Use the Sweet Valley data from Problem P-F:16-41B.

Requirements
1. Prepare the 2024 statement of cash flows by the direct method.
2. How will what you learned in this problem help you evaluate an investment?

Problem P-F:16-41B

The 2024 income statement and comparative balance sheet of Sweet Valley, Inc. follow:

Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long-term notes payable during 2024. 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. Plant asset was acquired for cash.

Transcribed Image Text:

SWEET VALLEY, INC. Income Statement Year Ended December 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue Interest Expense Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income $ 77,400 14,500 10,100 8,200 (21,100) $ 445,000 203,200 241,800 102,000 139,800 (12,900) 126,900 19,400 $ 107,500