Prepare Stoughton's statement of cash flows for the year ended December 31, 2018, using the indirect method.
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.	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.

Revenues:

Service revenue $283,000

Dividend revenue 8,700

$291,700

Expenses: Cost of goods sold 103,000 Salary expense 55,000 Depreciation expense 34,000 Advertising expense 4,300 Interest expense 2,100 Income tax expense 10,000 208,400 Net income $83,300

a. Acquisition of plant assets was $ 156,000. Of this amount, $ 105,000 was paid in cash and $ 51,000 was financed by signing a note payable.

b. Proceeds from the sale of land totaled $ 23,000.

c. Proceeds from the issuance of common stock totaled $ 35, 000.

d. Payment of a long-term note payable was $ 17,000.

e. Payment of dividends was $ 13, 000.

f. From the balance sheets:

Current Assets	2018	2017
Cash	80,000	52,000
Account Receivable	38,000	55,000
Inventory	50,000	69,000
Prepaid Expenses	9,400	8,100
Current Liabilities
Accounts Payable	36,000	18,0001
Accrued Liabilities	14,000	79,000

Cash flows from financing activities

Cash receipt from issuance of common stock

Payment of Note payable

Payment of Dividends

Net cash Provided by (ued for) financing activities

Net increase (decrease) in cash

Cash balance at December 31 2013

Cash Balance at December 31 2014

Noncash investing and financing activities:

Acquisition of plant assets by issuing a note payable