Please complete both question $($requirements $1$ and $2)$

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.

Breen Travel Products, Inc.

$$Income Statement

$$Year Ended December $31,2018$

$$Revenues:

$$Service revenue $$245,000$

Dividend revenue $8,800$ $$253,800$

Expenses:

Cost of goods sold $100,000$

$$Salary expense $63,000$

$$Depreciation expense $34,000$

Advertising expense $4,300$

Interest expense $2,300$

$$Income tax expense $9,000212,600$

$$Net income $$41,200$

Additional$$ data:

a$.$Acquisition of plant assets was $ $190000.$ Of this$$ amount, $ $140000$ was paid in cash and $ $50000$ was financed by signing a note payable.

b$.$Proceeds from the sale of land totaled $ $110000.$

c$.$Proceeds from the issuance of common stock totaled $ $36000.$

d$.$Payment of a$$ long$-$term note payable was $$12000.$

e$.$Payment of dividends was $ $17000.$

f$.$From the balance$$ sheets:

Dec $31$

$2017$

Current assets:

$$

Cash $$58200$

Accounts receivable $$53000$

Inventory $$84000$

Prepaid expenses $8300$

Current liabilities:

Accounts payable $$15000$

Accrued liability$$s $$80000$

$2018$

$2017$

Current assets:

$$

Cash $$75000$

Accounts receivable $$41000$

Inventory $$89000$

Prepaid expenses $9700$

Current liabilities:

Accounts payable $$36000$

Accrued liability$$s $$18000$