The income statement and additional data of Breen Travel Products, Inc., follow:

Additional data:

a. Acquisition of plant assets was \(\$ 200,000\). Of this amount, \(\$ 160,000\) was paid in cash and \(\$ 40,000\) by signing a note payable.

b. Proceeds from sale of land totalled \(\$ 23,000\).

c. Proceeds from issuance of common share totalled \(\$ 60,000\).

d. Payment of long-term note payable was \(\$ 13,000\).

e. Payment of dividends was \(\$ 10,000\)

f. From the balance sheet:

{Requirements}
1. Prepare Breen's statement of cash flows for the year ended December 31, 2020, using the indirect method.
2. Evaluate Breen's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

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1 A Breen Travel Products, Inc. Income Statement For the Year Ended December 31, 2020 B C D 2 Revenues: 3 Sales revenue 4 Dividend revenue $283,000 8,700 $291,700 5 Expenses: 6 Cost of goods sold 96,000 7 Salary expense 54,000 8 Depreciation expense 27.000 9 Advertising expense 4,300 10 Interest expense 2.100 11 Income tax expense 6.000 189.400 12 Net income $ 102,300 13