The Staten P16-35 Preparing the statement of cash flows-indirect method, evaluating cash Learn flows, and measuring free cash flows comparative balance sheet of Morston Educational Supply at December 31,2016,. Net $(157 rted the following 2016 2015 Current Assets: Cash Accounts Receivable Merchandise Inventory 85,400 21,500 4,800 21,500 59,400 63,000 Current Liabilities 27,100 $ 26,100 10,400 Accounts Payable Accrued Liabilities 10,900 Morston's transactions during 2016 included the following 20,200 Depreciation expense 55,100 Purchase of building with cash 47,000 Net income 114,000 Payment of cash dividends Purchase of equipment with cash nce of long-term notes payable to borrow cash ance of common stock for cash Requirements 1. Prepare the statement of cash flows of Morston Educational Supply for the year ended December 31, 2016. Use the indirect method to report cash flows from operating activities 2. Evaluate Morston's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3. If Morston plans similar activity for 2017, what is its expected free cash flow P16A-36A Preparing the statement of cash flows- direct method Frontier Rare Coins (FRC) was formed on January 1, 2016. Additional data for the year follow: a. On January 1, 2016, FRC issued no par common stock for $500,000 b. Early in January, FRC made the following cash The Staten P16-35 Preparing the statement of cash flows-indirect method, evaluating cash Learn flows, and measuring free cash flows comparative balance sheet of Morston Educational Supply at December 31,2016,. Net $(157 rted the following 2016 2015 Current Assets: Cash Accounts Receivable Merchandise Inventory 85,400 21,500 4,800 21,500 59,400 63,000 Current Liabilities 27,100 $ 26,100 10,400 Accounts Payable Accrued Liabilities 10,900 Morston's transactions during 2016 included the following 20,200 Depreciation expense 55,100 Purchase of building with cash 47,000 Net income 114,000 Payment of cash dividends Purchase of equipment with cash nce of long-term notes payable to borrow cash ance of common stock for cash Requirements 1. Prepare the statement of cash flows of Morston Educational Supply for the year ended December 31, 2016. Use the indirect method to report cash flows from operating activities 2. Evaluate Morston's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3. If Morston plans similar activity for 2017, what is its expected free cash flow P16A-36A Preparing the statement of cash flows- direct method Frontier Rare Coins (FRC) was formed on January 1, 2016. Additional data for the year follow: a. On January 1, 2016, FRC issued no par common stock for $500,000 b. Early in January, FRC made the following cash