The comparative balance sheet of Robeson Educational Supply at December 31, 2018, reported the following:

Robeson's transactions during 2018 included the following:

Requirements
1. Prepare the statement of cash flows of Robeson Educational Supply for the year ended December 31, 2018. Use the indirect method to report cash flows from operating activities.
2. Evaluate Robeson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.
3. If Robeson plans similar activity for 2018, what is its expected free cash flow?

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2018 2017 Current Assets: $ 83,900 $ 20,500 Cash Accounts Receivable 14,500 21,800 Merchandise Inventory 60,400 61,800 Current Liabilities: Accounts Payable 29,600 28,100 Accrued Liabilities 10,500 11,900 Payment of cash dividends Purchase of equipment with cash Issuance of long-term notes payable to borrow cash Issuance of common stock for cash $ 21,200 Depreciation expense 54,400 Purchase of building with cash 44,000 Net income 111,000 $ 17,400 103,000 63,600