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The comparative balance sheet of Morgensen Educational Supply at December 31, 2018, 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, 2018, reported the following Click the icon to view the comparative balance sheet.) Morgensen's transactions during 2018 included the following: Click the icon to view the transactions) Read the requirements Suppl i Data Table -X g: 2018 2017 Current Assets: Cash $ 95,800 $ 25,500 orgens If a bol 15,200 Et metho ter a zel 21,500 59,000 ith the 63,600 Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable al Sup 31,100 28,100 Flows 31, 20 Accrued Liabilities 10,700 11,200 Print Done jelds and then click Check Answer i Data Table - $ 13,200 54.800 Payment of cash dividends Purchase of equipment with cash Issuance of long-term notes payable to borrow cash Issuance of common stock for cash Depreciation expense Purchase of building with cash Net income 17.500 102,000 59 600 52.000 107.000 A Requirements 1. Prepare the statement of cash flows of Morgensen Educational Supply for the year ended December 31, 2018. 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 2019 what is its expected free cash flow? Morgensen Educational Supply Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities
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