The income statement and additional data of Seacrest Services, Inc., follow:

Additional data follows:
a. Acquisition of fixed assets totaled $122,000. Of this amount, $105,000 was paid in cash and a $17,000 note payable was signed for the remainder.
b. Proceeds from sale of land totaled $28,000. No gain or loss was recognized onthe sale.
c. Proceeds from issuance of common stock totaled $34,000.
d. Payment of long-term note payable was $17,000.
e. Payment of dividends was $11,000.
f. Data from the comparative balance sheet follow:

Requirements
1. Prepare Seacrest Services€™ statement of cash flows for the year ended September 30, 201 2, using the indirect method.
2. Calculate Seacrest Services€™ free cash flow for the year ended September 30, 2012.
3. Evaluate Seacrest Services€™ cash flows for the year. In your evaluation, mention all three categories of cash flows as well as free cash flow and give the reason for yourevaluation.

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Seacrest Services, Inc Income Statement Year Ended September 30, 2012 Revenues: Sales Revenue Dividend Revenue $304,000 7.000 Total Revenues $311,000 Expenses: Cost of Goods Sold Salaries Expense Depreciation Expense Advertising Expense Interest Expense Income Tax Expense $100,000 55,000 20,000 9,000 1,000 13,000 Total Expenses 198,000 $113,000 Net Income September 30 Current Assets: Cash Accounts Receivat.. Inventory Current Liabilities: Accounts Payable Accrued Liabilities 2012 2011 $89,000 $24,000 45,000 62,000 34,000 28,000 $33,000 $26,000 11,000 26,000