The income statement and additional data of Specialized Services, Inc. follow:

Additional data follow:
a. Acquisition of plant assets totaled $116,000. Of this amount, $101,000 was paid in cash and a $15,000 note payable was signed for the remainder.
b. Proceeds from sale of land totaled $24,000. No gain was recognized on the sale.
c. Proceeds from issuance of common shares totaled $30,000.
d. Payment of long-term note payable was $15,000.
e. Payment of dividends was $11,000.
f. Data from the comparative balance sheet follow:

Requirements
1. Prepare Specialized Services€™ cash flow statement for the year ended June 30, 2014, using the indirect method.
2. Evaluate Specialized Services€™ cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

Specialized Services, Inc. Income Statement Year Ended June 30, 2014 Revenues Sales Revenue Dividend Revenue $229,000 8,000 Total Revenues $237,000 Expenses: Cost of Goods Sold Salary Expense Depreciation Expense Advertising Expense Interest Expense Income Tax Expense $103,000 45,000 28,000 12,000 2,000 9,000 Total Expenses 199,000 38,000 Net Income June 30 Current Assets: Cash 2014 2013 43,000 58,000 92,000 85,000 Inventory. Current Liabilities: Accounts Payable...$35,000 $22,000 ..9 13,000 21,000