The comparative balance sheet of Morston Educational Supply at December 31, 2024, reported the following (Click the icon to view the comparative balance sheet) Morston'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 Morston Educational Supply for the year ended December 31, 2024. Use the indirect method to report cash flows from operating activities (Ube 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 20) Complete the statement one section at a time, beginning with the cash flows from operating activities Morston Educational Supply Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activides Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities 86.600 Read the requirements Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities Cash Payment of Dividends Cash Receipt from Issuance of Common Stock 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 Morston'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 Morston's cash flows. Operations are 1 The company is There is more financing by Cash cash. plant assets. than by during the year For the reasons given above, Morston's cash flows look Requirement 3. If Morston 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 Abbrmations inet Cash pon for planned i -Cash payments for planned investments in long-term assets, NCCA Net cash provided by operating activities NCFA Net cash provided by financing actie) Select the labels and enter the amounts to calculate Morston's expected free cash flow for 2025 Free cash w Time Remaining on s Mest s ex OA ecte Current Assets: 2024 2023 Cash $ 96,600 $ 18,500 Accounts Receivable 14,900 21,300 Merchandise Inventory 62,000 58.800 Current Liabilities Accounts Payable 31,600 25,100 Accrued Liabilities 11.100 11,200 Print Done crease in cash. Abbreviations vities.) Sheet) Data table Payment of cash dividends S 15,200 Depreciation expense $ 17,100 Purchase of equipment with cash 55,000 Purchase of building with cash 103,000 Issuance of long-term notes payable to borrow cash 45,000 Net income 66,600 Issuance of common stock for cash 113,000 - X 4 Print Done ons use