The Statement of Cash Flows 887 P16-35A Preparing the statement of cash flows-indirect method, evaluating Learning Objectives 2, 3 cash flows, and measuring free cash flows The comparative balance sheet of Jackson Educational Supply at reported the following December 31, 2018, 1. Net Cash Used for Inw Act. $(152,700) 2018 2017 Current Assets: Cash Accounts Receivable Merchandise Inventory 62,600 60,400 $ 87,700 $ 23,500 5,300 22,000 Current Liabilities Accounts Payable Accrued Liabilities 28,100 26,100 10,600 11,300 Jackson's transactions during 2018 included the following $16,700 98,000 57,600 $ 16,200 Depreciation expense Payment of cash dividends Purchase of equipment with cash Issuance of long-term notes payable to borrow cash Issuance of common stock for cash 54,700 Purchase of building with cash 48,000 105,000 Net income Requirements 1. Prepare the statement of cash flows of Jackson Educational Supply for the year ended December 31, 2018. Use the indirect method to report cash flows from operating activities. 2. Evaluate Jackson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3. If Jackson plans similar activity for 2019, what is its expected free cash flow? l asrninn Ohiertive 4