The comparative balance sheets of Moynihan Movie Theater Company at September 30, 2012 and 2011, reported the following:

Moynihan€™s transactions during the year ended September 30, 2012, included the following:

Requirements
1. Prepare Moynihan Movie Theater Company€™s statement of cash flows for the year ended September 30, 2012, using the indirect method to report cash flows from operating activities. Report non-cash investing and financing activities in an accompanying schedule.
2. Evaluate Moynihan€™s cash flows for the year. Mention all three categories of cash flows and give the reason for yourevaluation.

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tember 30, 2012 2011 Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses $40,40014,500 14,300 21,800 63,500 60,600 6,000 16,700 Current liabilities: Accounts payable Accrued liabilities Income tax payable 57,700 $55,800 17,100 15,300 10,300 24,100 Acquisition of land by issuing note payable Amortization expense. Payment of cash dividnd... 5,000 Nt $104000 Depreciation expense.16,000 8,000 Cash purchase of building... 44,000 Net income....56,000 25,000 62,200 45,000 Cash purchase of Issuance of common stock for cash... Stock dividend. 12,000 13,000 equipment... Issuance of long-term note payable to borrow cash...