P16-34A Preparing TIC wogarison's statement of cash flows using I cash flows using the indirect method. Include a accompanying schedule of non-cash investing and financing activities. 34A Preparing the statement of cash flows-indirect method with non-cash transactions The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow: ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 $ 440,000 209,200 230,800 $ 77,400 14,400 10,200 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 102,000 128,800 8,700 (21,100) (12,400) 116,400 20,000 $ 96,400 2017 $ ROLLING HILLS, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 Assets Current Assets: Cash $ 26,900 Accounts Receivable 26,500 Merchandise Inventory 79,800 Long-term Assets: Land 35,100 Plant Assets 124,840 Accumulated Depreciation-Plant Assets (18,940) Total Assets $ 274,200 15,700 25,400 91,500 14,000 114,650 (17,950) $ 243,300 Liabilities $ 35,700 28,700 $ 30,400 30,300 Current Liabilities: Accounts Payable Accrued Liabilities Long-term Liabilities: Notes Payable Total Liabilities 79,000 143,400 108,000 168,700 Stockholders' Equity Common Stock, no par 88,900 Retained Earnings 41,900 Total Stockholders' Equity 130,800 Total Liabilities and Stockholders' Equity $ 274,200 64,500 10,100 74,600 $ 243,300 Additionally, Rolling Hills purchased land of $21,100 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 $13, The plant acquisition was for cash. Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by indirect method. 2. How will what you learned in this problem help you evaluate an investment