just requirement 1 on the second page please

Practice Problem 12-2 The comparative baiance sheet of Mystic Movie Theater Company at June 30, 2018 and 2017, reported the following June 30, 2018 2017 Current assets: Cash and cash equivalents S 39,000 $ 22,000 Accounts recelivabie Inventories.. 14,800 22,200 63,400 60,700 Prepaid expenses Current llabilities: 3,700 1,600 www. Accounts payable Accrued liabilities.. income tax payable.. S 58,200 $ 55,200 26,800 36,800 10,500 9,500 Mystic Movie Theater's transactions during the vear ended June 30, 2018, included the following: Acquisition of land 13,600 15,500 Sale of long-term investment. Depreciation expense by issuing note payable Amortization expense... Payment of cash dividend...... Cash purchase of equipment Issuance of long-term note payable to borrow cash..... 102,000 50,000 Cash purchase of building 3,000 56,000 Net income... 31,000 Issuance of common 8,000 stock for cash 56,700 10,000 Stock dividend 44,000 1. Prepare Mystic Movie Theater Company's statement of cash flows for the year ended June 30, 2018, using the indirect method to report cash flows from operating activities. Report non-cash investing and financing activities in an accompanying schedule. 2. Evaluate Mystic Movie Theater's cash flows for the year. Mention all 3 categories of cash flows and give the reason for your evaluation. Instructions: Summer Time Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions Requirement: 1. Prepare the 2018 statement of cash flows using the indirect method. Solution: Summer Time Supply Corp. Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Increase in accounts receivable Increase in inventories Decrease in prepaid expenses Increase in accounts payable Increase in salary payable Decrease in other accrued liabilities Sub-total Net cash provided by operating activities Cash flows from investing activities: Purchase of land Purchase of equipment Net cash used for investing activities Cash flows from financing activities: Payment of dividends Issuance of note payable Issuance of common stock Net cash provided by financing activities Net increase in cash Cash balance, December 31, 2017 Cash balance, December 31, 2018