The comparative balance sheet of Mellow Movie Theatre Company at March 31, 2020, reported the following: (Click the icon to view the current accounts.) Mellow's transactions during the year ended March 31, 2020 included the following: (Click the icon to view the transaction data.) Requirements 1. Prepare Mellow Movie Theatre Company's statement of cash flows for the year ended March 31, 2020, using the indirect method to report cash flows from operating activities. Report non-cash investing and financing activities in an accompanying schedule. 2. Evaluate Mellow's cash flows for the year. Mention all three categories of cash flows and give the reason for your evaluation. C Requirement 1. Prepare Mellow Movie Theatre Company's statement of cash flows for the year ended March 31, 2020, using the indirect method to report cash flows from operating activities. Report non-cash investing and financing activities in an accompanying schedule. Start by completing the cash flows from operating activities. Then, continue with completing the investing and financing activities sections. Finally, determine the net increase (decrease) in cash. (Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in a statement of cash flows.) Mellow Movie Theatre Company Statement of Cash Flows For the Year Ended March 31, 2020 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Decrease in accounts receivable Increase in inventories Increase in prepaid expenses Current accounts Transaction data Acquisition of land by Sale of long-term investment $ 13,700 March 31, 2020 2019 issuing note payable Payment of cash dividend. Cash purchase of equipment Issuance of long-term note payable to borrow cash $ 106,000 Depreciation expense 15,600 30,000 Cash purchase of building 78,200 Net income 46,000 52,000 Issuance of common shares for cash. 43,000 Share dividend....... 17,000 18,000 Current assets: Cash and cash equivalents Accounts receivable $ 11,400 $ 17,500 14,800 21,800 63,700 60,400 3,800 1,700 - X Increase in accounts payable Decrease in accrued liabilities Increase in income tax payable Net cash provided by operating activities Cash flows from investing activities: Purchase of equipment Purchase of building Sale of long-term investment Net cash used for investing activities Cash flows from financing activities: Issuance of long-term note payable Issuance of common shares Payment of cash dividends Net cash provided by financing activities Net increase (decrease) in cash Inventories Prepaid expenses Current liabilities: Accounts payable 58,000 55,600 Accrued liabilities Income tax payable 15,000 17,100 15,100 10,200 Print Done Cash balance, March 31, 2019 Cash balance, March 31, 2020 Non-cash investing and financing activities: Acquisition of land by issuing note payable Requirement 2. Evaluate Mellow's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. Mellow Movie Theatre's cash flow looks Operations The company is The financing appears reasonable. Print Done