The income statement and additional data of Stoughton Travel Products, Inc., follow. (Click the icon to view the income statement.) (Click the icon to view the additional data) Requirements 1. Prepare Stoughton'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 Requirement 1. Prepare Stoughton's statement of cash lows for the year ended December 31, 2018, using the indirect method. Start by completing the cash flows from operating activities. Then complote each section of the statement of cash flows, including the noncash investing and fin decrease in cash) Stoughton Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by used for) operating activities si ate Stoughton Travel Products, Inc. Income Statement Year Ended December 31, 2018 th tivities. (u Revenues Service revenue $ 234,000 8,000 $ 242,000 Dividend revenue 98,000 Expenses Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense 56,000 22,000 4,300 3,300 15,000 198,600 Income tax expense $ 43,400 Net income 2018, using the indirect method. More Info a. Acquisition of plant assets was $ 158,000. Or this amount, $ 103,000 was paid in cash and $55,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $45,000. c. Proceeds from the issuance of common stock totaled $60,000. d. Payment of a long-term note payable was $18,000 e. Payment of dividends was $13,000. f. From the balance sheets: December 31, 2018 2017 Current assets: $ $ Cash Accounts receivable Inventory 34,000 42,000 89,000 9,200 1,200 60,000 87 000 8,600 Prepaid expenses Current liabilities: $ 35,000 $ Accounts payable Accrued liabilities 14,000 57.000 17 000 Print Done iduc con ed atio Aeth E Acquisition of plant assets Ri Decrease in accounts receivable 1. Depreciation 2. Increase in accounts payable Decrease in accrued liabilities Increase in inventory Increase in prepaid expenses Net income Payment of dividends Payment of long-term note payable Proceeds from issuance of common stock Proceeds from sale of land B