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

Additional data:

a. Acquisition of fixed assets totaled $117,000. Of this amount, $103,000 was paid in cash; a $14,000 note payable was signed for the remainder.

b. Proceeds from a sale of land totaled $22,000. No gain or loss was recognized on the sale.

c. Proceeds from issuance of common stock totaled $50,000.

d. Payment of long-term note payable was $9,000.

e. Payment of dividends was $11,000.

f. Data from the comparative balance sheet follow:

Requirements

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

2. Calculate Consolidated Services? free cash flow for the year ended November 30, 2018.

3. Evaluate Consolidated 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(s) for your evaluation.

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Consolidated Services, Inc. Income Statement Year Ended November 30, 2018 Revenues: $304,000 Sales Revenue Dividend Revenue 11,000 $315,000 Total Revenues Expenses: $103,000 Cost of Goods Sold Salaries Expense 55,000 Depreciation Expense Advertising Expense Interest Expense Income Tax Expense Total Expenses 28,000 16,000 6,000 9,000 217,000 $ 98,000 Net Income November 30 2018 2017 Current Assets: Cash. . Accounts Receivable. . Inventory. . Current Liabilities: Accounts Payable.. Accrued Liabilities... $85,000 $23,000 52,000 57,000 52,000 40,000 $41,000 $32,000 14,000 29,000