The 2024 income statement and comparative balance sheet of Granite Rock, Inc. follow: Granite Rock, Inc.

Income Statement

Year Ended December 31, 2024

Net Sales Revenue

$435,000

Cost of Goods Sold

200,200

Gross Profit

234,800

Operating Expenses:

Salaries Expense

$71,400

Depreciation ExpensePlant Assets

14,900

Other Operating Expenses

10,500

Total Operating Expenses

96,800

Operating Income

138,000

Other Income and (Expenses):

Interest Revenue

8,600

Interest Expense

(21,800)

Total Other Income and (Expenses)

(13,200)

Net Income Before Income Taxes

124,800

Income Tax Expense

19,300

Net Income

$105,500

Granite Rock, Inc.
Comparative Balance Sheet
December 31, 2024 and 2023
	2024	2023
Assets
Current Assets:
Cash	$26,300	$14,900
Accounts Receivable	26,400	25,600
Merchandise Inventory	80,000	91,100
Long-term Assets:
Land	34,500	10,000
Plant Assets	125,180	109,480
Accumulated DepreciationPlant Assets	(24,280)	(19,780)
Total Assets	$268,100	$231,300
Liabilities
Current Liabilities:
Accounts Payable	$35,500	$30,100
Accrued Liabilities	28,600	30,500
Long-term Liabilities:
Notes Payable	78,000	102,000
Total Liabilities	142,100	162,600
Stockholders' Equity
Common Stock, no par	88,600	64,300
Retained Earnings	37,400	4,400
Total Stockholders' Equity	126,000	68,700
Total Liabilities and Stockholders' Equity	$268,100	$231,300

Additionally, Granite Rock purchased land of$24,500 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 accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash. Read the 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?