The comparative balance sheets of Bedford Movie Theater Company at November 30, 2021 and 2020, reported the following: 

Bedford’s transactions during the year ended November 30, 2021, included: 

Requirements 

1. Prepare Bedford Movie Theater Company’s statement of cash flows for the year ended November 30, 2021, using the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.

2. Evaluate Bedford’s cash flows for the year. Mention all three categories of cash flows, and give the rationale for your evaluation.

Transcribed Image Text:

1234STO UGE 3 Current assets: 5 A1 6 Cash and cash equivalents Accounts receivable Inventories 7 Prepaid expenses 9 8 Current liabilities: Accounts payable 10 Accrued liabilities 11 Income tax payable 12 A November 30, 2020 2021 $ 13,600 14,400 63,700 3,500 $ 57,600 46,800 6,600 $ 15,500 21,600 60,700 8,000 $ 56,100 26,800 10,600