Use the Rolling Hills, Inc. data from Problem P16-34A

Prepare the 2018 statement of cash flows by the direct method.

How will what you learned in this problem help you evaluate an investment?

ROLLING HILLS, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,900 $15,700 Accounts Receivable 25,400 26,500 91,500 Merchandise Inventory 79,800 Long-term Assets: 35,100 Land 14,000 Plant Assets 124,840 114,650 Accumulated Depreciation-Plant Assets (18,940) (17,950) Total Assets 243,300 $274,200 Liabilities Current Liabilities: Accounts Payable $ 35,700 $30,400 Accrued Liabilities 28,700 30,300 Long-term Liabilities: Notes Payable 79,000 108,000 143,400 Total Liabilities 168,700 Stockholders' Equity Common Stock, no par 64,500 88,900 Retained Earnings 10,100 41,900 Total Stockholders' Equity 130,800 74,600 Total Liabilities and Stockholders' Equity 274,200 S 243,300 ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 440,000 Net Sales Revenue Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: 77,400 Salaries Expense Depreciation Expense-Plant Assets 14,400 Other Operating Expenses 10,200 Total Operating Expenses 102,000 Operating Income 128,800 Other Income and (Expenses): Interest Revenue 8,700 (21,100) Interest Expense Total Other Income and (Expenses) (12,400) Net Income Before Income Taxes 116,400 Income Tax Expense 20,000 96,400 Net Income