The comparative balance sheets of Bedford Movie Theater Company at November 30, 2018, and 2017, reported the following:

Bedford’s transactions during the year ended November 30, 2018, included:

Requirements

1. Prepare Bedford Movie Theater Company’s statement of cash flows for the year ended November 30, 2018, 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.

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A1 November 30, 2018 2017 3 Current assets: Cash and cash equivalents $ 13,600 14,400 63,700 3,500 $ 15,500 21,600 60,700 8,000 4 Accounts receivable Inventories 6. Prepaid expenses Current liabilities: 8 9. Accrued liabilities Income tax payable Accounts payable 10 $ 57,600 46,800 6,600 $ 56,100 26,800 10,600 11 12 Acquisition of land by issuing note payable .. Amortization expense. . Payment of cash dividend.. Cash purchase of Proceeds from sale of long- term investment. Depreciation expense Cash purchase of building.. Net income.... Issuance of common stock for cash . Stock dividend.. $96,000 $16,300 7,000 15,300 25,000 50,000 11,000 equipment.. Issuance of long-term note payable to borrow cash.. 56,700 ............ 13,000 41,000 17,000