The comparative balance sheet of Morgensen Educational Supply at December 31, 2024, reported the following: - Data table Current Assets: 2024 2023 Cash $ 82,900 $ 18,500 for the year ended Decem is not used in the stateme Accounts Receivable 14,800 21,400 Merchandise Inventory 63,200 59,800 ting activities. Current Liabilities: Accounts Payable 30,100 25,100 Accrued Liabilities 10,500 11,700 Print Done Morgensen's transactions during 2024 included the following: Data table Payment of cash dividends $ 23,200 Depreciation expense S 17,300 Purchase of equipment with cash 54,300 Purchase of building with cash 99,000 Issuance of long-term notes payable to borrow cash 46,000 Net income 62,600 Issuance of common stock for cash 108,000 Print Done - - 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. 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: 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 Morgensen'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 Morgensen's cash flows. Operations are cash. The company is There is more financing by plant assets. than by Cash during the year. For the reasons given above, Morgensen's cash flows look Requirement 3. If Morgensen 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 Morgensen's expected free cash flow for 2025. = Free cash flow =