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

Additional data:
a. Acquisition of plant assets was $170,000. Of this amount, $140,000 was paid in cash and $30,000 by signing a note payable.
b. Proceeds from sale of land totaled $48,000.
c. Proceeds from issuance of common stock totaled $31,000.
d. Payment of long-term note payable was $16,000.
e. Payment of dividends was $10,000.
f. From the balance sheets:

Requirements
1. Prepare Norton€™s statement of cash flows for the year ended December 31, 2010, using the indirect method.
2. Evaluate Norton€™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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Norton Travel Products, Inc. Income Statement Year Ended December 31, 2010 Revenues: $235,000 Service revenue Dividend revenue 8,300 $243,300 Expenses: Salary expense.62,000 Depreciation expense. 33.000 4,300 2,400 Advertising expense Interest expense. Income tax expense 7,000 210,700 S 32,600 Net income December 31, 2010 2009 Current Assets: Cash Accounts receivable $32,000 $13,300 41,000 57,000 ventory.48.000 87000 Prepaid expenses.9,100 8,200 Current Liabilities: Accounts payable$32,000 $17,000 Accrued liabilities..14,000 43,000