Roanoke Ltd.'s accountants have assembled the following data for the year ended
December 31, 2017:

Transaction data for 2017:
Acquisition of building ............................................................... $325,750
Issuance of long-term note payable to borrow cash ................... $ 36,000
Acquisition of land by issuing long-term note payable .............. 237,500
Loss on sale of equipment.......................................................... 16,750
Acquisition of long-term investment ....................................... 79,000
Net income .............................................................................. 199,000
Payment of cash dividends ................................................... 90,750
Amortization expense ............................................................ 60,250
Repurchase and retirement of common shares ...................... 85,750
Collection of loan .................................................................. 71,750
Issuance of common shares for cash ............................................. 123,000
Retirement of bonds payable by issuing common shares ........ 157,500
Stock dividends ...................................................................... 79,500
Sale of equipment for cash ..................................................... 145,000
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, 2017 2016 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 Incom Accrued liabilities 56,500 132,250 96,500 38,750 45,750 139,500 41,750 68,000 e tax payable