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Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. P16-34A Preparing the statement of cash flows-indire ct method with The 2018 income statement and comparative balance shect of Rolling Hills, Inc. non-cash transactions follow ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 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 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: $ 15,700 $ 26,900 Cash 25,400 26,500 Accounts Receivable 91,500 79,800 Merchandise Inventory Long-term Assets: 14,000 35,100 Land 114,650 124,840 Plant Assets (17,950) (18,940) Accumulated Depreciation-Plant Assets $ 243,300 $ 274,200 Total Assets Liabilities Current Liabilities: $ 30,400 $ 35,700 Accounts Payable 30,300 28,700 Accrued Liabilities Long-term Liabilities: 108,000 79,000 Notes Payable 168,700 143,400 Total Liabilities Stockholders' Equity 64,500 88,900 Common Stock, no par 10,100 41,900 Retained Earnings 74,600 130,800 Total Stockholders' Equity $ 243,300 $274,200 Total Liabilities and Stockholders' Equity 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 for $0. The cost and the accumulated depreciation of the disposed asset was $13,410. The plant acquisition was for cash. disposed of Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what learned in this problem help you evaluate an investment? you

Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. P16-34A Preparing the statement of cash flows-indire ct method with The 2018 income statement and comparative balance shect of Rolling Hills, Inc. non-cash transactions follow ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 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 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: $ 15,700 $ 26,900 Cash 25,400 26,500 Accounts Receivable 91,500 79,800 Merchandise Inventory Long-term Assets: 14,000 35,100 Land 114,650 124,840 Plant Assets (17,950) (18,940) Accumulated Depreciation-Plant Assets $ 243,300 $ 274,200 Total Assets Liabilities Current Liabilities: $ 30,400 $ 35,700 Accounts Payable 30,300 28,700 Accrued Liabilities Long-term Liabilities: 108,000 79,000 Notes Payable 168,700 143,400 Total Liabilities Stockholders' Equity 64,500 88,900 Common Stock, no par 10,100 41,900 Retained Earnings 74,600 130,800 Total Stockholders' Equity $ 243,300 $274,200 Total Liabilities and Stockholders' Equity 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 for $0. The cost and the accumulated depreciation of the disposed asset was $13,410. The plant acquisition was for cash. disposed of Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what learned in this problem help you evaluate an investment? you

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. P16-34A Preparing the statement of cash flows-indire ct method with The 2018 income statement and comparative balance shect of Rolling Hills, Inc. non-cash transactions follow ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 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 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
Transcribed Image Text:Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. P16-34A Preparing the statement of cash flows-indire ct method with The 2018 income statement and comparative balance shect of Rolling Hills, Inc. non-cash transactions follow ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 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 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: $ 15,700 $ 26,900 Cash 25,400 26,500 Accounts Receivable 91,500 79,800 Merchandise Inventory Long-term Assets: 14,000 35,100 Land 114,650 124,840 Plant Assets (17,950) (18,940) Accumulated Depreciation-Plant Assets $ 243,300 $ 274,200 Total Assets Liabilities Current Liabilities: $ 30,400 $ 35,700 Accounts Payable 30,300 28,700 Accrued Liabilities Long-term Liabilities: 108,000 79,000 Notes Payable 168,700 143,400 Total Liabilities Stockholders' Equity 64,500 88,900 Common Stock, no par 10,100 41,900 Retained Earnings 74,600 130,800 Total Stockholders' Equity $ 243,300 $274,200 Total Liabilities and Stockholders' Equity 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 for $0. The cost and the accumulated depreciation of the disposed asset was $13,410. The plant acquisition was for cash. disposed of Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what learned in this problem help you evaluate an investment? you
Transcribed Image Text:ROLLING HILLS, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: $ 15,700 $ 26,900 Cash 25,400 26,500 Accounts Receivable 91,500 79,800 Merchandise Inventory Long-term Assets: 14,000 35,100 Land 114,650 124,840 Plant Assets (17,950) (18,940) Accumulated Depreciation-Plant Assets $ 243,300 $ 274,200 Total Assets Liabilities Current Liabilities: $ 30,400 $ 35,700 Accounts Payable 30,300 28,700 Accrued Liabilities Long-term Liabilities: 108,000 79,000 Notes Payable 168,700 143,400 Total Liabilities Stockholders' Equity 64,500 88,900 Common Stock, no par 10,100 41,900 Retained Earnings 74,600 130,800 Total Stockholders' Equity $ 243,300 $274,200 Total Liabilities and Stockholders' Equity 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 for $0. The cost and the accumulated depreciation of the disposed asset was $13,410. The plant acquisition was for cash. disposed of Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what learned in this problem help you evaluate an investment? you
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