Use the Rolling Hills, Inc. data from Problem P14-34A.
Requirements
1. Prepare the 2018 statement of cash flows by the direct method.
2. How will what you learned in this problem help you evaluate an investment?
In Problem P14-34A

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 $0. The cost and the accumulated depreciation of the disposed asset was $13,410. The plant acquisition was for cash.

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