Data from the comparative balance sheet of Gibson's Greenhouse, Inc., at May 31, 2016, follow:

Gibson’s Greenhouse, Inc.’s transactions during the year ended May 31, 2016, included:

Requirements
1. Prepare Gibson’s Greenhouse, Inc.’s statement of cash flows for the year ended May 31, 2016, using the indirect method to report cash flows from operating activities.
2. Evaluate Gibson’s Greenhouse, Inc.’s cash flows for the year. Mention all three categories of cash flows and give the reason for your evaluation?

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May 31 Current Assets: Cash and Cash Equivalents Accounts Receivable. Inventory.. Current Liabilities: Accounts Payable. Accrued Liabilities Income Tax Payable . 2016 2015 $13,500 $ 4,100 21,500 53,700 14,400 54,900 $29,100 $28,400 16,500 14,700 8,000 4,400 Payment of cash dividend. Purchase of equipment for cash Issuance of long-term note payable in exchange for cash. $30,500 Depreciation Expense.. Purchase of building for cash Net Income . Issuance of common stock $17,300 107,500 73,000 18,300 53,000 14,000