The comparative balance sheet of Jackson Educational Supply at December 31, 2012, reported the following:

Jackson's transactions during 2012 included the following:

Requirements
1. Prepare the statement of cash flows of Jackson Educational Supply for the year ended December 31, 2012. 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 2013, what is its expected free cashflow?

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December 31, 2012 2011 Current asscts: $ 88,200 $ 22,500 Cash and cash cquivalents Accounts reccivable 14,400 21,700 Inventorics 63,600 60,400 Current liabilities: Accounts payable 28,600 27,100 Accrucd liabilitics . 10,600 11,200