LO4 E11-35B. (Learning Objective 4: Prepare the statement of cash flows-direct method) The income statement and additional data of Jubilee World, Inc., follow: $ 222,000 11,500 $ 233,500 Jubilee World, Inc. Income Statement Year Ended June 30, 2018 Revenues: Sales revenue 4 Dividend revenue 5 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense 10 Interest expense 11 Income tax expense 12 Net income 102,000 42.000 28,000 8.000 2.500 10.500 193,000 $40.500 Additional data: a. Collections from customers are $15,500 more than sales. b. Payments to suppliers are $1,700 less than the sum of cost of goods sold plus advertis- ing expense. c. Payments to employees are $2,200 less than salary expense. d. Dividend revenue, interest expense, and income tax expense equal their cash amounts. e. Acquisition of plant assets is $176,000. Of this amount, $ 122,000 is paid in cash and $54,000 is financed by signing a long-term note payable. f. Proceeds from the sale of land totaled $24,000. g. Proceeds from the issuance of common stock totaled $39,000 h. Payment of a long-term note payable is $20,000. i. Payment of dividends is $7.000. j. Cash balance, June 30, 2017, was $32,000. Requirements 1. Prepare Jubilee World's statement of cash flows and accompanying schedule of noncash investing and financing activities. Report operating activities using the direct 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