The 2018 income statement and comparative balance sheet of Sweet Valley, Inc. follow:
SWEET VALLEY, INC.
Income Statement
Year Ended December 31, 2018

SWEET VALLEY, INC.
Comparative Balance Sheet
December 31, 2018 and 2017

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 $0. The cost and the accumulated depreciation of the disposed asset was $13,240.
Plant asset was acquired for cash.
Requirements
1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method.
2. How will what you learned in this problem help you evaluate an investment?

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$ 445,000 Net Sales Revenue Cost of Goods Sold 203,200 Gross Profit 241,800 Operating Expenses: $ 77,400 Salaries Expense Depreciation Expense-Plant Assets 14,500 Other Operating Expenses 10,100 Total Operating Expenses 102,000 Operating Income 139,800 Other Income and (Expenses): Interest Revenue 8,200 Interest Expense (21,100) Total Other Income and (Expenses) (12,900) Net Income Before Income Taxes 126,900 Income Tax Expense 19,400 $ 107,500 Net Income 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 $ 235,500