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

Additional data:
a. Acquisition of plant assets was $200,000. Of this amount, $160,000 was paid in cash and $40,000 by signing a note payable.
b. Proceeds from sale of land totaled $23,000.
c. Proceeds from issuance of common stock totaled $60,000.
d. Payment of long-term note payable was $13,000.
e. Payment of dividends was $10,000.
f. From the balance sheets:

Requirements
1. Prepare Breen€™s statement of cash flows for the year ended December 31, 2012, using the indirect method.
2. Evaluate Breen€™s cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for yourevaluation.

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Breen Travel Products, Inc. Income Statement Year Ended December 31, 2012 Revenues: Service revenue $283,000 S,700 $291,700 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense 96,000 54,000 27,000 4,300 2,100 6,000 189,400 $102,300 Net income December 31, 2012 2011 Current assets: Cash Accounts receivable Inventory Prepaid expenses $150,000 $138,900 7,000 44,000 104,000 72,000 9,500 8,300 Current liabilities: Accounts payable Accrued liabilities $ 38,000 23,000 11,000 24,000