The income statement and additional data of Amalgamated Services, Inc., follow:

Additional data:

a. Acquisition of fixed assets totaled $115,000. Of this amount, $85,000 was paid in cash; a $30,000 note payable was signed for the remainder.

b. Proceeds from the sale of land totaled $21,000. No gain or loss was recognized on the sale.

c. Proceeds from issuance of common stock total $34,000.

d. Payment of a long-term note payable was $17,000.

e. Payment of dividends was $11,000.

f. Data from the comparative balance sheet follow:

Requirements

1. Prepare Amalgamated Services? statement of cash flows for the year ended June 30, 2018, using the indirect method.

2. Calculate Amalgamated Services free cash flow for the year ended June 30, 2018.

3. Evaluate Amalgamated Services? cash flows for the year. In your evaluation, mention all three categories of cash flows as well as free cash flow and give the reason for your evaluation.

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Amalgamated Services, Inc. Income Statement Year Ended June 30, 2018 Revenues: $281,000 Sales Revenue Dividend Revenue 10,000 $291,000 Total Revenues Expenses: $101,000 Cost of Goods Sold Salaries Expense Depreciation Expense Advertising Expense Interest Expense Income Tax Expense Total Expenses 60,000 17,000 15,000 3,000 14,000 210,000 $ 81,000 Net Income 2018 2017 June 30 Current Assets: Cash . Accounts Receivable. Inventory. . Current Liabilities: Accounts Payable. Accrued Liabilities. $61,000 $28,000 26,000 39,000 35,000 25,000 $28,000 $17,000 28,000 15,000