Data from the comparative balance sheet of Stevenson Building Materials, Inc., at July 31, 2018, follow:

Stevenson Building Materials, Inc.?s transactions during the year ended July 31, 2018, included:

Requirements

1. Prepare Stevenson Building Materials, Inc.?s statement of cash flows for the year ended July 31, 2018, using the indirect method to report cash flows from operating activities.

2. Evaluate Stevenson Building Materials, Inc.?s cash flows for the year. Mention all three categories of cash flows and give the reason(s) for your evaluation.

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2017 July 31 Current Assets: Cash and Cash Equivalents.. Accounts Receivable. Inventory.. Current Liabilities: Accounts Payable.. Accrued Liabilities. Income Tax Payable. 2018 $16,700 $ 4,900 15,000 21,800 53,400 54,700 $29,900 $28,500 16,500 4,100 14,600 8,700 Payment of cash dividend.. $30,500 Purchase of equipment for cash Issuance of long-term note payable in exchange for cash. .. Depreciation Expens . $17,200 Purchase of building for cash . Net Income .. Issuance of common stock 78,600 47,400 71,500 56,000 14,000