The comparative balance sheet of

Johnson

Educational Supply at December 31,

2024,

reported the following:

LOADING...

(Click the icon to view the comparative balance sheet.)

Johnson's

transactions during

2024

included the following:

LOADING...

(Click the icon to view the transactions.) Read the requirements

LOADING...

.

Requirement 1. Prepare the statement of cash flows of

Johnson

Educational Supply for the year ended December 31,

2024.

Use the indirect method to report cash 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.

	Johnson 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

Johnson'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

Johnson's

cash flows.Operations are

generating

using up

cash.The company is

divesting itself of

investing in new

plant assets.There is more financing by

borrowing

issuing stock

than by

borrowing.

issuing stock.

Cash

decreased

increased

during the year.For the reasons given above,

Johnson's

cash flows look

strong

weak

.Requirement 3. If

Johnson

plans similar activity for

2025,

what is its expected free cash flow? (Use a minus sign or parentheses for amounts that result in a decrease 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

Johnson's

expected free cash flow for

2025.

	-		-		=	Free cash flow
	-		-		=

Data Table

	2024	2023
Current Assets:
Cash	$84,000	$22,500
Accounts Receivable	14,600	21,100
Merchandise Inventory	62,200	59,400
Current Liabilities:
Accounts Payable	31,600	27,600
Accrued Liabilities	10,500	11,100

Payment of cash dividends

$23,200

Depreciation expense

$17,400

Purchase of equipment with cash

54,400

Purchase of building with cash

106,000

Issuance of long-term notes payable to borrow cash

51,000

Net income

60,600

Issuance of common stock for cash

109,000