Noel Travel Products, Inc. Income Statement Year Ended December 31, 2018 Revenues: Service revenue $280,000 Dividend revenue 8,900 $288,900 Expenses: Cost of goods sold 94,000 Salary expense 54,000 Depreciation expense 21,000 Advertising expense 4,200 Interest expense 2,500 Income tax expense 7,000 182,700 Net income $106,200 The income statement and additional data of Noel Travel Products, Inc., follow: LOADING...(Click the icon to view the income statement.) LOADING...(Click the icon to view the additional data.) Requirements 1. Prepare Noel'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. Requirement 1. Prepare Noel's statement of cash flows for the year ended December 31, 2018, using the indirect method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Noel Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: 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 Noncash investing and financing activities: Requirement 2. Evaluate Noel's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation. Noel's cash flows look strong weak . Financing activities Investing activities Operating activities are the main source of cash. The company invested in new assets but was required to borrow the entire purchase price without having to borrow the entire purchase price . The financing transactions included issuing notes payable to acquire plant assets issuing stock, paying dividends, and making payments on a long-term note payable purchasing treasury stock and issuing a note payable . All of these signs are favorable unfavorable . Choose from any list or enter any number in the input fields and then continue to the next question.

		Noel Travel Products, Inc.
		Income Statement
		Year Ended December 31, 2018
	Revenues:
		Service revenue	$280,000
		Dividend revenue	8,900	$288,900
	Expenses:
		Cost of goods sold	94,000
		Salary expense	54,000
		Depreciation expense	21,000
		Advertising expense	4,200
		Interest expense	2,500
		Income tax expense	7,000	182,700
	Net income			$106,200

Additional data:

a.	Acquisition of plant assets was $ 204 comma 000$204,000. Of this amount, $ 160 comma 000$160,000 was paid in cash and $ 44 comma 000$44,000 was financed by signing a note payable.
b.	Proceeds from the sale of land totaled $ 27 comma 000$27,000.
c.	Proceeds from the issuance of common stock totaled $ 47 comma 000$47,000.
d.	Payment of a long-term note payable was $ 14 comma 000$14,000.
e.	Payment of dividends was $ 9 comma 000$9,000.
f.	From the balance sheets:

	December 31,
	2018		2017
Current assets:
Cash	$125,000		$99,900
Accounts receivable	43,000		57,000
Inventory	29,000		65,000
Prepaid expenses	9,600		8,500
Current liabilities:
Accounts payable	$39,000		$19,000
Accrued liabilities	18,000		80,000

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