[SOLVED] The income statement and additional data of

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

Additional data: a. Acquisition of plant assets was $212,000. Of this amount, $160,000 was paid in cash and $52,000 by signing a note payable. b. Proceeds from sale of land totaled $27,000. c. Proceeds from issuance of common stock totaled $80,000. d. Payment of long-term note payable was $17,000. e. Payment of dividends was $13,000. f. From the balance sheets:

Requirements 1. Prepare Newburys statement of cash flows for the year ended December 31, 2010, using the indirect method. 2. Evaluate Newburys 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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Newbury Travel Products, Inc. Income Statement Year Ended December 31, 2010 Revenues: Service revenue . Dividend revenue.. $283,000 8,000 $291,000 Expenses: Cost of goods sold. Salary expense Depreciation expense. Advertising expense. . 103,000 78,000 26,000 4,500 Interest expense. 2,600 Income tax expense.. 8,000 222,100 $ 68,900 Net income ...... December 31, 2009 2010 Current Assets: Cash . Accounts receivable . $30,000 $10,800 42,000 59,000 Inventory.. 30,000 91,000 Prepaid expenses. 9,400 8,700 Current Liabilities: Accounts payable. $38,000 $27,000 Accrued liabilities. 18,000 99,000

Question: The income statement and additional data of

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