. i Data Table Taylor Services, Inc. Income Statement Year Ended September 30, 2018 Revenues: Sales revenue $ 299,000 13,000 $ 312,000 Dividend revenue Total revenues Expenses: Cost of goods sold Salaries expense Depreciation expense Advertising expense Interest expense Income tax expense Total expenses $ 102,000 54,000 20,000 10,000 1,000 12,000 199,000 $ 113,000 Net income Print Done i More Info Additional data: a. Acquisition of fixed assets totaled $83,000. Of this amount, $70,000 was paid in cash; a $13,000 note payable was signed for the remainder. b. Proceeds from the sale of land totaled $30,000. No gain or loss was recognized on the sale. C. Proceeds from issuance of common stock totaled $31,000. d. Payment of long-term note payable was $9,000. e. Payment of dividends was $17,000. f. Data from the comparative balance sheet follow: 2018 2017 $ 124,000 $ 26,000 55,000 63,000 September 30 Current Assets: Cash. Accounts receivable Inventory.. Current Liabilities: Accounts payable Accrued liabilities 94,000 87,000 $ 31,000 $ 40,000 20,000 30,000 Print Done Requirement 1. Prepare Taylor Services' statement of cash flows for the year ended September 30, 2018, using the indirect method. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Taylor Services, Inc. Statement of Cash Flows Year Ended September 30, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: 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 during the year Cash balance, September 30, 2017 Cash balance, September 30, 2018 Requirement 2. Calculate Taylor Services' free cash flow for the year ended September 30, 2018. Taylor Services' free cash flow for the year ended September 30, 2018 is $ Requirement 3. Evaluate Taylor 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 for your evaluation. as it should in a successful company. The Taylor Services' operations provided net cash flows of The majority of the cash flow came from investing activities is a good indication that the company is financing activities of indicates that the company and the net cash The free cash flow indicates that the company have free cash available