Accountants for Blondies Confectionary Ltd. have assembled the following data for the year ended December 31, 2014:

Transaction data for 2014:

Required
1. Prepare Blondies Confectionary Ltd.'s cash flow statement, using the indirect method to report operating activities. Include a note regarding noncash investing and financing activities.
2. Evaluate Blondies Confectionary Ltd.'s cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.

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December 31, 2014 2013 Current accounts (all result from operations) Current assets Cash and cash equivalents Accounts receivable Inventories Prepaid expenses $9,050 17,025 29,625 800 $ 8,700 18,425 24,125 525 Current liabilities Notes payable (for inventory purchases) Accounts payable Income tax payable Accrued liabilities 7,575 18,025 1,475 12,075 9,200 16,875 1,950 5,800 Acquisition of building by Issuance of preferred shares issuing long-term note payable.... for cash $14,050 Acquisition of equipment.. Acquisition of long-term 18,500 2 Payment of cash dividends Payment of long-term debt... 16,950 11,200 Retirement of bonds payable 5,075 by issuing common 2,575 shares investment Collection of loan Gain on sale of investment Issuance of long-term debt 875 Sale of long-term investment for cash.... 17,750 Stock dividends.. 5,550 to borrow cash