I need help with the second tab, P16A-37A. Directions: Preparing the statement of cash flows – direct method Use the Rolling Hills data from Problem P16-34A (first tab) Requirement: 1. Prepare the 2015 statement of cash flows by the DIRECT method ATTACHMENT PREVIEW Download attachment Module 8 P16A-37A.xlsx 1. Rolling Hills Inc. Statement of Cash Flows Year Ended December 31, 2015 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense – Plant Assets Increase in Accounts Receivable Decrease in Merchandise Inventory Increase in Accounts Payable Decrease in Accrued Liabilities Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchase of Plant With a Note Net Cash Used for Investing Activities Cash Flows from Financing Activities: Cash Receipt from Issuance of Common Stock Cash Payment of Notes Payable Cash Payment of Dividends Net Cash Provided by Financing Activities Net Increase/Decrease in Cash Cash Balance, December 31, 2014 Cash Balance, December 31, 2015 Non Cash Investing & Financing Activities: Acquisition of Land by Issuing Notes Payable Total Non Cash Investing & Financing Activities $97,800 $14,400 -$1,200 $11,900 -$4,900 $2,100 $22,300 $120,100 -$26,400 -$26,400 $23,900 -$51,300 -$62,900 $90,400 $3,300 $15,900 $26,400 $23,600 $23,600 2. How will what you learned in this problem help you evaluate an investment? It will help predict future cash flows, evaluate management decisions, and predict the ability to pay debts and dividends. 1. Rolling Hills Inc. Statement of Cash Flows Year Ended December 31, 2015 Cash Flows from Operating Activities: 436000 Receipts: Collections From Customers $25,500 Interest Received $26,700 Total Cash Receipts $434,800 Payments: To Suppliers (cash paid for merch. Inventory & operating expenses; 185,400 + 12,300) To Employees For Interest For Income Tax Total Cash Payments Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchase of Plant With a Note Net Cash Used for Investing Activities Cash Flows from Financing Activities: Cash Receipt from Issuance of Common Stock Cash Payment of Notes Payable Cash Payment of Dividends Net Cash Provided by Financing Activities Net Increase/Decrease in Cash Cash Balance, December 31, 2014 Cash Balance, December 31, 2015 Non Cash Investing & Financing Activities: Acquisition of Land by Issuing Notes Payable Total Non Cash Investing & Financing Activities 2.