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P16-34ARequirement 1 ROLLING HILLS, INC.Statement of Cash FlowsYear Ended December 31, 2017Cash Flows from Operating Activities:Net Income$ 97,800Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:Depreciation Expense—Plant Assets$ 14,400Increase in Accounts Receivable(1,200)Decrease in Merchandise Inventory11,900Increase in Accounts Payable4,900Decrease in Accrued Liabilities(2,100)27,900Net Cash Provided by Operating Activities125,700Cash Flows from Investing Activities:Acquisition of Equipment for Cash$ (28,600)Net Cash Used for Investing Activities(28,600)Cash Flows from Financing Activities:Cash Receipt from Issuance of Common Stock$ 23,900Cash Payment of Notes Payable(46,600)Cash Payment of Dividends(63,900)Net Cash Used for Financing Activities(86,600)Net Increase (Decrease) in Cash10,500Cash Balance, December 31, 201415,900Cash Balance, December 31, 2015$ 26,400
Non-cash Investing and Financing Activities:Acquisition of Land by issuing Long-term Notes Payable$ 23,600Total Non-cash Investing and Financing Activities$ 23,600
P16-34ARequirement 1, cont. Requirement 2 I will be able to evaluate an investment with this information because I can see the cash receipts and cash payments for a specific period. This information can help me predict future cash flows,Plant Assets12/31/2014107,640Acquisitions28,60011,560Disposed of12/31/2015124,680Accumulated Depreciation—Plant Assets17,94012/31/201414,400Depreciation ExpenseDisposed of11,56020,78012/31/2015Retained Earnings6,60012/31/201497,800Net IncomeDividend 63,90040,50012/31/2015Notes Payable101,00012/31/201423,600IssuancePayment46,60078,00012/31/2015