Roanoke Ltd.'s accountants have assembled the following data for the year ended December 31, 2014:

Transaction data for 2014:

Required
1. Prepare Roanoke Ltd.'s cash flow statement, using the indirect method to report operating activities. Note any additional disclosures that are required.
2. Evaluate Roanoke 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 $75,500 174,250 271,500 13,250 $ 56,750 155,500 212,500 10,250 Current liabilities Notes payable (for inventory purchases) Accounts payable Income tax pavable Accrued liabilities 56,500 132,250 96,500 38,750 45,750 139,500 41,750 68,000 Acquisition of building Acquisition of land by issuing $325,750 Issuance of long-term note payable to borrow cash. S 36,000 16,750 199,000 90,750 long-term note payable Acquisition of long-term 237,500 Loss on sale of equipment. Net income investment Amortization expense Collection of loan.. Issuance of common shares 79,000 Payment of cash dividends.. 0,250 Repurchase and re 71,750of common shares 85,750 Retirement of bonds pavable 123,000 157,500 9,500 Sale of equipment for cash.145,000 for c by issuing common shares...