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Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2018, using the indirect me 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash the rationale for your evaluation. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation Decrease in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Net cash provided by (used for) operating activities More Info Additional data: a. Acquisition of plant assets was $143,000. Of this amount, $103,000 was paid in cash and $40,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $48,000. c. Proceeds from the issuance of common stock totaled $35,000. d. Payment of a long-term note payable was $19,000. e. Payment of dividends was $12,000. f. From the balance sheets: December 31, 2018 2017 Current assets: Cash $ 65,000 35,100 Accounts rece iva ble 37,000 56,000 Inventory 48,000 49,000 Prepaid expenses 10,000 8,600 Current liabilities: Accounts payable 37,000 $ 23,000 Newton Travel Products, Inc. Income Statement Year Ended December 31, 2018 Revenues: $ 239,000 Service revenue 9,000 248,000 Dividend revenue Expenses: Cost of goods sold 102,000 Salary expense 57,000 Depreciation expense 21,000 Advertising expense 4,400 Interest expense 3,300 11,000 198,700 Income tax expense 49,300 Net income ord EA

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