The income statement and additional data of Norcross Travel Products, Inc., follow: (Click the icon to view the income statement.) Requirements (Click the icon to view the additional data.) 1. Prepare Norcross' statement of cash flows for the year ended December 31, 2021, 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. Norcross Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation Increase in accounts payable Net cash provided by (used for) operating activities Revenues: Service revenue $ 237,000 8,300 Norcross Travel Products, Inc. Income Statement Year Ended December 31, 2021 Additional data: a. Acquisition of plant assets was $123,000. Of this amount, $80,000 was paid in cash and $43,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $23,000. c. Proceeds from the issuance of common stock totaled $47,000. d. Payment of a long-term note payable was $11,000. Dividend revenue $ 245,300 e. Payment of dividends was $15,000. f. From the balance sheets: Expenses: Cost of goods sold 102,000 Salary expense 63,000 December 31, 2021 2020 Depreciation expense 25,000 Current assets: Advertising expense 4,500 Cash $ 90,000 $ 4,600 Interest expense 2,700 Accounts receivable 48,000 59,000 9,000 206,200 Income tax expense Inventory 50,000 61,000 $ 39,100 Prepaid expenses 9,400 8,700 Net income Current liabilities: Current liabilities: Accounts payable Accrued liabilities 69 40,000 99,000 $ 23,000 80,000