Requirement 1. Prepare the statement of cash flows of Smithson Educational Supply for the year ended December 31, 2024. Use the indirect method to report cas flows from operating activities. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Smithson Educational Supply Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income 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, 2023 Cash Balance, December 31, 2024 Requirement 2. Evaluate Smithson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. Complete the following statements to evaluate Smithson's cash flows. Operations are The company is There is more financing by Cash cash. during the year. plant assets. than by For the reasons given above, Smithson's cash flows look Requirement 3. If Smithson plans similar activity for 2025, what is its expected free cash flow? (Use a minus sign or parentheses for amounts that result in a decr in cash. Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments in long-term assets; NCOA = Net cash provided by operating activities; NCFA = Net cash provided by financing activities.) Select the labels and enter the amounts to calculate Smithson's expected free cash flow for 2025. = Free cash flow Current Assets: Cash Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable Accrued Liabilities 2024 $ 108,300 $ 14,600 62,000 30,600 11,200 2023 22,500 21,300 59,500 27,600 11,800 Payment of cash dividends Purchase of equipment with cash Issuance of long-term notes payable Issuance of common stock for cash borrow cash 15,200 54,800 55,000 114,000 Depreciation expense Purchase of building with cash Net income 17,600 103,000 65,600 Requirement 1. Prepare the statement of cash flows of Smithson Educational Supply for the year ended December 31, 2024. Use the indirect method to report cas flows from operating activities. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Smithson Educational Supply Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income 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, 2023 Cash Balance, December 31, 2024 Requirement 2. Evaluate Smithson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. Complete the following statements to evaluate Smithson's cash flows. Operations are The company is There is more financing by Cash cash. during the year. plant assets. than by For the reasons given above, Smithson's cash flows look Requirement 3. If Smithson plans similar activity for 2025, what is its expected free cash flow? (Use a minus sign or parentheses for amounts that result in a decr in cash. Abbreviations used: Cash pmts for planned invest. = Cash payments for planned investments in long-term assets; NCOA = Net cash provided by operating activities; NCFA = Net cash provided by financing activities.) Select the labels and enter the amounts to calculate Smithson's expected free cash flow for 2025. = Free cash flow Current Assets: Cash Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable Accrued Liabilities 2024 $ 108,300 $ 14,600 62,000 30,600 11,200 2023 22,500 21,300 59,500 27,600 11,800 Payment of cash dividends Purchase of equipment with cash Issuance of long-term notes payable Issuance of common stock for cash borrow cash 15,200 54,800 55,000 114,000 Depreciation expense Purchase of building with cash Net income 17,600 103,000 65,600