The comparative balance sheet of Smithson Educational Supply at December 31, 2018, reported the folowing (Cick the icon to view the comparative balance sheet) Smithson's transactions during 2018 included the following EB (Click the icon to view the transactions.) Read the requirements www Requirement 1. Prepare the statement of cash flows of Smithson Educational Supply for the year ended December 31, 2018 Use the indirect method to report cash flows from operating activities (he amim 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 Complete the statement one section at a time, beginning with the cash flows from operating activities Smithson 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 tional Supply a e sheet) ollowing: Data table Current Assets 2018 2017 - X Cash S 79,900 $ 22,500 Accounts Receivable 14,800 21,800 ws of Smithson e in cash If al inning with the cational Suppl f Cash Flows cember 31, 201 Accrued Liabilities report cash flows from operating activities. ( Merchandise Inventory 63,000 58.800 ro.) Current Liabilities: Accounts Payable 28 600 28,100 10.800 11,700 Print Done On Educational Supply at December 31, 2018, reported the following balance sheet) Data table Payment of cash dividends $ 14,200 Purchase of equipment with cash 54,800 Depreciation expense Purchase of building with cash Issuance of long-term notes payable to borrow cash 44,000 Net income. Issuance of common stock for cash 104,000 me to Net Cash Print Done $ 17,400 107,000 65,600 - X erating activities (Use a m son Educational Supply at December 31, 2018, reported the following: we balance sheet) ded the following 5.) - X of cash flows of S a decrease in ca a time, beginning chson Educationa Catement of Cash Ended Decembe Requirements 1. Prepare the statement of cash flows of Smithson Educational Supply for the year ended December 31, 2018. Use the indirect method to report cash flows from operating activities. 2. Evaluate Smithson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3. If Smithson plans similar activity for 2019, what is its expected free cash flow? Print Done ash flows from operating act Smithson 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: Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities C