Requirement 1. Prepare Pasco 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.) Pasco 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 The income statement and additional data of Pasco Services, Inc., follow: (Click the icon to view the income statement.) Read the requirements. (Click the icon to view the additional data.) Additional data: a. Acquisition of fixed assets totaled $131,000. Of this amount, $114,000 was paid in cash; a $17,000 note payable was signed for the remainder. b. Proceeds from the sale of land totaled $25,000. No gain or loss was recognized on the sale. c. Proceeds from issuance of common stock totaled $80,000. d. Payment of long-term note payable was $10,000. e. Payment of dividends was $13,000. f. Data from the comparative balance sheet follow: September 30 2018 2017 Current Assets: Cash... Accounts receivable. Inventory.... $ 131,000 $ 24,000 57,000 65,000 95,000 89,000 Current Liabilities: Accounts payable..... $ 36,000 $ 24,000 Accrued liabilities 21,000 30,000 Pasco Services, Inc. Income Statement Year Ended September 30, 2018 Revenues: Sales revenue Dividend revenue Total revenues $ 304,000 12,000 $ 316,000 Expenses: Cost of goods sold $ 103,000 Salaries expense 59,000 Depreciation expense 18,000 Advertising expense 9,000 Interest expense 6,000 5,000 Income tax expense 200,000 Total expenses $ 116,000 Net income 1. Prepare Pasco Services' statement of cash flows for the year ended September 30, 2018, using the indirect method. 2. Calculate Pasco Services' free cash flow for the year ended September 30, 2018. 3. Evaluate Pasco 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(s) for your evaluation