Data from the comparative balance sheet of Izzie Company at March 31,2010, follow:

Izzie Company’s transactions during the year ended March 31, 2010, included the following:

Requirements 1. Prepare Izzie Company’s statement of cash flows for the year ended March 31, 2010, using the indirect method to report cash flows from operating activities.
2. Evaluate Izzie’s cash flows for the year. Mention all three categories of cash flows and give the reason for your evaluation.

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March 31 Current Assets: Cash and Cash Equivalents. Accounts Receivable. Inventory. Current Liabilities: Accounts Payable. Accrued Liabilities. Income Tax Payable. 2010 2009 $ 6,200 $4,000 14,900 21,700 63,200 60,600 $30,100 $27,600 10,700 11,100 8,000 4,700