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

Additional data:
a. Acquisition of plant assets was $ 95,000. Of this amount, $ 65,000 was paid in cash and $ 30,000 by signing a note payable.
b. Proceeds from sale of land totaled $ 17,000.
c. Proceeds from issuance of common stock totaled $ 46,000.
d. Payment of long- term note payable was $ 17,000.
e. Payment of dividends was $ 8,000.
f. From the balance sheets:

Requirements
1. Prepare Tullis Travel Products€™s statement of cash fllows for the year ended December 31, 2014, using the indirect method.
2. Evaluate Tullis€™ cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for yourevaluation.

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Tullis Travel Products, Inc. Income Statement Year Ended December 31, 2014 Revenues: 273,000 Service revenue Dividend revenue 8,700 281.700 Expenses Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense ncome tax expense 135,000 59,000 28,000 2,900 2,100 243400 38,300 Net income December 31, 2014 2013 Current assets: Cash Accounts receivable Inventory Prepaid expenses 118,300 48,600 65,000 77,000 8,700 46,000 87,000 9,200 Current liabilities: Accounts payable S 33,90021,000 66000 57000 11 Accrued liabilities