Additional data: a. Acquisition of plant assets was $193,000. Of this amount, $140,000 was paid in cash and $53,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $110,000. c. Proceeds from the issuance of common stock totaled $100,000. d. Payment of a long-term note payable was $20,000. e. Payment of dividends was $18,000. f. From the balance sheets: December 31, 2018 2017 Current assets: $ 125,000 $ 6,700 Cash 58,000 Accounts receivable 38,000 40,000 9,800 87,000 Inventory Prepaid expenses 8,300 $ 38,000 Current liabilities: Accounts payable Accrued liabilities $ 22,000 79,000 14,000 Breen Travel Products, Inc. Income Statement Year Ended December 31, 2018 Revenues: Service revenue $ 239,000 8,200 $ 247,200 Dividend revenue Expenses: Cost of goods sold 101,000 Salary expense 61,000 26,000 Depreciation expense Advertising expense 4,500 Interest expense 1,900 9,000 203,400 Income tax expense $ 43,800 Net income The income statement and additional data of Breer Iravel Products, Inc., follow: (Click the icon to view the income statement) Click the icon to view the additional data.) Requirements 1. Prepare Breen's statement of cash flows for the year ended December 31, 2018, using the Indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation Net cash provided by (used for) operating activities 86,300 Cash flows from investing activities: Acquisition of plant assets (140,000) Proceeds from sale of land $10,000 Net cash provided by used for) investing activities (30,000) Cash flows from financing activities: Proceeds from issuance of common stock $ 100,000 Payment of long-term note payable (20,000) Payment of dividends (18,000) 82.000 Net cash provided by (used for) financing activities Net increase (decrease in cash Cash balance, December 31, 2017 Cash balance, December 31, 2018 Noncash investing and financing activities: Acquisition of plant assets by issuing a note payable Choose from any list or enter any number in the input fields and then click Check
