The comparative balance sheets of Orpheum Movie Theater Company at June 30, 2014, and 2013, reported the following:

Orpheum Movie Theater€™s transactions during the year ended June 30, 2014, included:

Requirements
1. Prepare Orpheum Movie Theater Company€™s statement of cash flows for the year ended June 30, 2014, using the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.
2. Evaluate Orpheum Movie Theater€™s cash flows for the year. Mention all three categories of cash flows, and give the reason for yourevaluation.

Transcribed Image Text:

A1 June 30, 2014 2013 3 Current assets: 4 Cash and cash equivalents 5 Accounts receivable 6 Inventories 7Prepaid expenses 8 Current liabilities: 9Accounts payable 10 Accrued liabilities 11) income tax payable 12 S 38,200 $ 21,700 14800 20,200 60,700 1,600 63,600 3,700 60,200 55,200 6,500 15,800 9,500 10,500 Acquisition of land Proceeds from sale of long by issuing note payabl Amortization cxpensc. Payment of cash dividend Cash purchase of $113,000 3,000 Depreciation expense 30,000 Cash purchase of building $13,600 14,700 50,000 .. 58,700 Issuance of common Issuance of long-term note stock for cash. 5,000 10,000 payable to borrow cash.... 40,000