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

Mystic Movie Theater€™s transactions during the year ended June 30, 2012, included the following:

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

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ine 2012 2011 Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses S39,000$22,000 14,800 22,200 60,700 1,600 63,400 3,700 Current liabilities: Accounts payable Accrued liabilities Income tax payable 58,200$55,200 36,800 26,800 9,500 10,500 Acquisition of land Sale of long-term investment.. $13,600 Depreciation expense by issuing note payable.. $102,000 50,000 56,000 3,000 Amortization expense Payment of cash dividend..31,000 Cash purchase of N Net income Issuance of common 56,700 stock for cash Stock dividend. 8,000 10,000 equipment... Issuance of long-term note payable to borrow cash. 44,000