The comparative balance sheet of Jackson Educational Supply at December 31, 2015, reported the following: Jacksons transactions

The comparative balance sheet of Jackson Educational Supply at December 31, 2015, reported the following:

Jackson’s transactions during 2015 included the following:

Requirements
1. Prepare the statement of cash flows of Jackson Educational Supply for the year ended December 31, 2015. 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 2016, what is its expected free cashflow?

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2015 2014 Current Assets: Cash Accounts Receivable Merchandise Inventory 88,200 22,500 14,400 21,700 63,600 60,400 Current Liabilities: Accounts Payable Accrued Liabilities $ 28,600 27,100 11,200 10,600 16,700 Payment of cash dividends Purchase of equipment with cash Issuance of long-term note payable to borrow cash Issuance of common stock for cash 17,200 Depreciation expense 54,400 Purchase of building with cash 100,000 150,001 Net incore Net income 59,600 106,000