The comparative balance sheet of Jackson Educational Supply at December 31, 2024, reported the following:

Jackson’s transactions during 2024 included the following:

Requirements
1. Prepare the statement of cash flows of Jackson Educational Supply for the year ended December 31, 2024. Use the indirect method to report cash flows from operating activities.
2. Evaluate Jackson’s cash flows for the year. Mention all three categories of cash flows and give the reason for your evaluation.
3. If Jackson plans similar activity for 2025, what is its expected free cash flow?

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Current Assets: Cash Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable Accrued Liabilities 2024 $ 87,700 15,300 62,600 28,100 10,600 2023 $ 23,500 22,000 60,400 26,100 11,300