The income statement and additional data of Norcross Travel Products, Inc., follow:

$($Click the icon to view the income statement.$)$

$($Click the icon to view the additional data.$)$

Requirements

Prepare Norcross' statement of cash flows for the year ended December $31,2021,$ using the indirect method.

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.

Requirement $1.$ Prepare Norcross's statement of cash flows for the year ended December $31,2021,$ using the indirect method.

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.$)$

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:

$\backslash$table$[[$Depreciation$,],[$Decrease in accounts receivable,$],[$Increase in inventory,$],[$Increase in prepaid expenses,$],[$Increase in accounts payable,$],[$Decrease in accrued liabilities,$15000],[$Net cash provided by $($used for$)$ operating activities,$-30000]]$

The income statement and additional data of Norcross Travel Products, Inc., follow:

$($Click the icon to view the income statement.$)$

$($Click the icon to view the additiop

Requirements

Prepare Norcross' statement of cash flows for the year ended December $31,2021,$

More info

Additional data:

Data table

a$.$ Acquisition of plant assets was $$145,000.$ Of this amount, $$102,000$ was paid in cash and $$43,000$ was financed by signing a note payable.

Norcross Travel Products, Inc.

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Income Statement

Year Ended December $31,2021$

$\backslash$table$[[$Revenues:$],[$Service revenue,$$,239,000,],[$Dividend revenue,,$8,300$$$,247,300],[$Expenses:$],[$Cost of goods sold,,$95,000,],[$Salary expense,,$57,000,],[$Depreciation expense,,$26,000,],[$Advertising expense,,$4,500,],[$Interest expense,,$3,900,],[$Income tax expense,,$10,000,196,400],[$Net income,,,$50,900]]$

b$.$ Proceeds from the sale of land totaled $$34,000.$

c$.$ Proceeds from the issuance of common stock totaled $$35,000.$

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d$.$ Payment of a long$-$term note payable was $$15,000.$

e$.$ Payment of dividends was $$16,000.$

f$.$ From the balance sheets: