The income statement and additional data of Breen Travel Products, Inc., follow:

Additional data:
a. Acquisition of plant assets was $200,000. Of this amount, $160,000 was paid in cash and $40,000 by signing a note payable.
b. Proceeds from sale of land totaled $23,000.
c. Proceeds from issuance of common share totaled $60,000.
d. Payment of long-term note payable was $13,000.
e. Payment of dividends was $10,000.
f. From the balance sheets:

Requirements
1. Prepare Breen's statement of cash flows for the year ended December 31, 2017, using the indirect method.
2. Evaluate Breen's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation?

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Breen Travel Products, Inc. Income Statement Year Ended December 31, 2017 2 Revenues: $ 283,000 Sales revenue Dividend revenue 4 8,700 $ 291,700 5 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax 96,000 54,000 27,000 4,300 2,100 6,000 10 189,400 102,300 12 Net income 13 December 31, 2017 2016 Current assets: Cash Accounts receivable Inventory Prepaid expenses $150,000 $138,900 57,000 72,000 8,300 44,000 104,000 9,500 Current liabilities Accounts payable Accrued liabilities $ 38,000 11,000 23,000 24,000