The income statement and additional data of Breen Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Breen's statement of cash flows for the year ended December 31, 2018, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Breen Travel Products, Inc. Statement of Cash Flows (Indirect Method) 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: Depreciation S Decrease in accounts receivable $ 51,000 21,000 19,000 Increase in inventory Increase in prepaid expenses Increase in accounts payable 14,000 Decrease in accrued liabilities Net cash provided by used for operating activities Data Table Breen Travel Products, Inc. Income Statement Additional data: a. Acquisition of plant assets was $125,000. Of this amount, $75,000 was paid in cash and $50,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $59,000. c. Proceeds from the issuance of common stock totaled $80,000. d. Payment of a long-term note payable was $19,000. e. Payment of dividends was $18,000. f. From the balance sheets: Year Ended December 31, 2018 Revenues: Service revenue $ 237,000 December 31, Dividend revenue 8,700 $ 245,700 2018 2017 Current assets: 97,000 Cash $ 90,000 $ 6,000 54,000 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Accounts receivable 40,000 59,000 21,000 Inventory 89,000 49,000 4,400 Prepaid expenses 9,200 8,200 2,300 Income tax expense 16,000 194,700 Current liabilities: $ 51,000 Net income Accounts payable $ $ 21,000 35,000 36,000 Accrued liabilities 43,000 Print Done Print Done Clear All