1. Prepare Medford 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 Medford's cash flows for the year. Mention all three categories of cash flows, and give the rationale for your evaluation. \begin{tabular}{lrlr} \hline Acquisition of land & & Proceeds from sale of long- & \\ by issuing note payable & $115,000 & term investment & $15,900 \\ Amortization expense & 4,000 & Depreciation expense & 16,000 \\ Payment of cash dividend & 32,000 & Cash purchase of building & 41,000 \\ Cash purchase of & & Net income \\ equipment & 78,600 & Issuance of common & 58,000 \\ Issuance of long-term note & & stock for cash & 16,000 \\ payable to borrow cash & 49,000 & Stock dividend & 15,000 \\ \hline \end{tabular} Amortization expense Decrease in accounts receivable Decrease in income tax payable Depreciation expense Increase in accounts payable Decrease in accrued liabilities Increase in inventories Increase in prepaid expenses Payment of cash dividends Purchase of building Purchase of equipment Sale of long-term investment Medford Movie Theater Company's cash flows look Medford Movie Theater generated a cash flow from investing activities largely due to the and a building. It generally bodes fource of cash. MedfordMovieTheatergeneratedaMedfordMovieTheater has credit-worthy to be able to issue long-term notes. We company invests in new capital assets. funds to pay cash dividends