Data table Current Assets: 2018 2017 Cash $ 98,200 $ 26,500 Accounts Receivable 14,400 21,100 Merchandise Inventory 63,900 59,000 Current Liabilities: Accounts Payable 31,100 25,100 Accrued Liabilities 10,800 11,600 Print Done - X Data table Payment of cash dividends $ 20,200 Depreciation expense $ 17,200 Purchase of equipment with cash 54,900 Purchase of building with cash 101,000 Issuance of long-term notes payable to borrow cash 53,000 Net income 66,600 Issuance of common stock for cash 104,000 Print Done Requirement 1. Prepare the statement of cash flows of Smithson Educational Supply for the year ended December 31, 2018. Use the indirect method to report cash flows from operating activities. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Smithson Educational Supply Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2017 Cash Balance, December 31, 2018 Requirement 2. Evaluate Smithson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. Complete the following statements to evaluate Smithson's cash flows. Operations are cash. The company is plant assets. There is more financing by than by Cash during the year. For the reasons given above, Smithson's cash flows look Requirement 3. If Smithson plans similar activity for 2019, what is its expected free cash flow? (Use a minus sign or parentheses for amounts that result in a decrease in cash. Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments in long-term assets; NCOA = Net cash provided by operating activities; NCFA = Net cash provided by financing activities.) Select the labels and enter the amounts to calculate Smithson's expected free cash flow for 2019. Free cash flow