E17-11 Use the income statement of Gillette Satellite Network. Inc.. in Exercise 17-6. plus these additional data during fiscal year 20X2:

a. Acquisition of equipment was $135.000. Of this amount, $100,000 was paid in cash and the remainder by signing a long-term note payable. Gillette sold no equipment during fiscal year 20X2

b. Proceeds from sale of land. $14,000.

c. Proceeds from issuance of common stock. $35,000.

d. Payment of long-term note payable. $20.000.

e. Payment of dividends. $10,000.

f. Change in cash balance, $? The balance at September 30, 20X1, was $18,000. g. The comparative balance sheet: Current assets: Cash Accounts receivable GILLETTE SATELLITE NETWORK, INC. Comparative Balance Sheet September 30, 20X2 and 20X1 Inventory Prepaid expenses. Total current assets Property, plant and equipment: Land Equipment. Less: Accumulated depreciation. 20X2 20X1 $ 18,000 65.000 59,000 6.000 $ 18,000 72,000 53,000 5,000 148,000 148.000 -0- 14,000 $226,000 (70,000) $91,000 156,000 $304,000 (41,000) 50,000 $212,000 Required Total assets Current liabilities: Accounts payable. Accrued liabilities. Total current liabilities. Long-term notes payable. Stockholders' equity: Common stock, no-par Retained earnings. Total liabilities and stockholders' equity. $ 41,000 19,000 $ 28,000 21,000 60.000 49,000 105,000 90,000 71,000 36,000 68,000 $304,000 37,000 $212,000 1. Prepare Gillette Satellite Network's statement of cash flows for the year ended September 30, 20X2. using the indirect method. 2. Evaluate Gillette Satellite Network's cash flows for the year. In your evaluation, mention all three categories of cash flows, and give the reason for your evaluation. Computing cash flows from operating activities-indirect method