make sure you answer #1 then #2 otherwise will be thumb down

P16-41B Preparing the statement of cash flows-indirect method with non-cash transactions The 2018 income statement and comparative balance sheet of Sweet Valley, Inc. follow: SWEET VALLEY, INC. Income Statement Year Ended December 31, 2018 $ 445,000 203,200 241,800 $ 77,400 14,500 10,100 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 102,000 139,800 8,200 (21,100) (12,900) 126,900 19,400 $ 107,500 SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Long-term Assets Land $ 26,300 26,400 79,300 $ 15,400 25,100 91,300 34,900 14,000 108,330 Plant Assets Accumulated Depreciation-Plant Assets Total Assets 115,790 (19,890) $ 262,800 (18,630) $ 235,500 Liabilities $ 35,600 28,900 $ 30,100 30,800 Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable Total Liabilities 78,000 142,500 105,000 165,900 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 88,200 32,100 120,300 $ 262,800 64,800 4,800 69,600 $ 235,500 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 50. The cost and the accumulated depreciation of the disposed asset was Plant asset was acquired for cash. Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method $13,240 2. How will what you learned in this problem help you evaluate an investment