The income statement and additional data of Norcross Travel Products, Inc., follow. E: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Norcross' statement of cash flows for the year ended December 31, 2018, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation Requirement 1. Prepare Norcross's statement of cash flows for the year ended December 31, 2018, using the indirect method Start by completing the gish flows from operating activities. The complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net recrease in cash.) Norcross Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash Nows from operating activities: Net income Adjustments to reconcie net income to net cash provided by used for) operating activities: Depreciation Decrease in accounts receivable Decreinirvenlory Increase in prepaid expenses Increase in socounts payable Decrease in acred liabilities Net cash provided by (used for) operating activities Net cash provided by (used for) operating activities More Info i Data Table Norcross Travel Products, Inc. Income Statement Year Ended December 31, 2018 Additional data: a. Acquisition of plant assets was $124,000. Of this amount, $80,000 was paid in cash and $44,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $59,000. c. Proceeds from the issuance of common stock totaled $47,000. d. Payment of a long-term note payable was $21,000. e. Payment of dividends was $15,000. f. From the balance sheets: Revenues: Service revenue $ 245,000 8,000 $ 253,000 Dividend revenue December 31, 2018 2017 Expenses: Cost of goods sold Salary expense Depreciation expense Current assets: Cash $ Advertising expense 98,000 61,000 34,000 4,200 3,300 10,000 $ Accounts receivable Inventory Prepaid expenses 32,000 35,000 89,000 9,700 6,300 56,000 90,000 8,900 Interest expense Income tax expense 210,500 42,500 Net income Current liabilities: $ $ Accounts payable Accrued liabilities 35,000 4,000 22,000 79,000 Print Done Print Done Choose from any liet or enter any number in the input fialde and then clit
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