The comparative balance sheet of Simon Theatre Company at March 31, 2020, reported the following: (Click the icon to view the current accounts.) Simon's transactions during the year ended March 31, 2020 included the following: i (Click the icon to view the transaction data.) Requirement 1. Prepare Simon 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.) Simon 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 Increase in accounts payable Decrease in accrued liabilities Increase in income tax payable Net cash provided by operating activities Cash flows from investing activities: Durchase of equipment Current accounts Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income tax payable Print March 31, 2020 2019 Done - .... $ 12,700 $ 17,000 14,700 21,900 63,900 60,600 3,200 1,500 57,500 56,000 14,400 17,300 14,600 10,000 X The comparative balance sheet of Simon Theatre Company at March 31, 2020, reported the following: (Click the icon to view the current accounts.) Simon's transactions during the year ended March 31, 2020 included the following: i (Click the icon to view the transaction data.) 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 Cash balance, March 31, 2019 Cash balance, March 31, 2020 Non-cash investing and financing activities: Acquisition of land by issuing note payable Transaction data Acquisition of land by issuing note payable Payment of cash dividend ..... Cash purchase of equipment .... Issuance of long-term note payable to borrow cash $ 13,400 15,100 51,000 57,000 Issuance of common shares for cash... 17,000 47,000 Share dividend. 18,000 Sale of long-term investment ....... $ 100,000 Depreciation expense.. 30,000 Cash purchase of building 78,200 Net income ... Print Done - X The comparative balance sheet of Simon Theatre Company at March 31, 2020, reported the following: (Click the icon to view the current accounts.) Simon's transactions during the year ended March 31, 2020 included the following: i (Click the icon to view the transaction data.) 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 Cash balance, March 31, 2019 Cash balance, March 31, 2020 Non-cash investing and financing activities: Acquisition of land by issuing note payable Transaction data Acquisition of land by issuing note payable Payment of cash dividend . . . . . Cash purchase of equipment .... Issuance of long-term note payable to borrow cash Requirement 2. Evaluate Simon's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. Simon Theatre's cash flow looks Operations The company is $ 13,400 15,100 51,000 57,000 Issuance of common shares for cash... 17,000 18,000 47,000 Share dividend Sale of long-term investment $ 100,000 Depreciation expense. 30,000 Cash purchase of building. 78,200 Net income .... Print The financing Done appears reasonable. - X