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The comparative balance sheet of Morgensen Educational Supply at December 31, 2024, reported the following: (Click the icon to view the comparative balance sheet.) Morgensen's
The comparative balance sheet of Morgensen Educational Supply at December 31, 2024, reported the following: (Click the icon to view the comparative balance sheet.) Morgensen's transactions during 2024 included the following (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare the statement of cash flows of Morgensen 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. Morgensen 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: \begin{tabular}{rr} \hline 2024 & 2023 \\ \hline \end{tabular} Current Assets: CashAccountsReceivableMerchandiseInventory$101,400$14,90062,40A22,50021,50058,800 Current Liabilities: Accounts Payable 30,60025,100 \begin{tabular}{lrr} Accrued Liabilities & 10,500 & 11,100 \\ \hline \end{tabular} Data table Requirements 1. Prepare the statement of cash flows of Morgensen Educational Supply for the year ended December 31, 2024. Use the indirect method to report cash flows from operating activities. 2. Evaluate Morgensen's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3. If Morgensen plans similar activity for 2025 , what is its expected free cash flow
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