Learning Objective 2 1. Net Cash Prov. by Op. Act. $132,700 P14-34A Preparing the statement of cash flowsindirect method with non-cash transactions The 2016 income statement and comparative balance sheet of Rolling Hills, Inc. follow: ROLLING HILLS, INC. Income Statement Year Ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit $442,000 208,200 233,800 Operating Expenses: Salaries Expense $ 74,400 Depreciation Expense-Plant Assets 15,000 Other Operating Expenses 10,800 Total Operating Expenses 100,200 Operating Income 133,600 Other Revenues and (Expenses): Interest Revenue 8,100 Interest Expense Total Other Revenues and (Expenses) Net Income Before Income Taxes (21,500) (13,400) 120,200 Income Tax Expense 19,400 Net Income $ 100,800