Data from the comparative balance sheet of Carter Company, at March 31, 2012, follow:

Carter Company€™s transactions during the year ended March 31, 2012, included the following:

Requirements
1. Prepare Carter Company€™s statement of cash flows for the year ended March 31, 2012, using the indirect method to report cash flows from operating activities.
2. Evaluate Carter Company€™s cash flows for the year. Mention all three categories of cash flows and give the reason for yourevaluation.

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March 31 Current Assets: Cash and Cash Equivalents Accounts Receivable Inventory Current Liabilities: Accounts Payable Accrued Liabilities Income Tax Payable 012 2011 $14,600 4,900 14,000 21,600 54,500 53,000 $29,900 $28,300 14,200 16,400 8,400 4,800 Payment of cash dividend$31,000 Purchase of Depreciation Expense .$17,400 Purchase of equipment for cash78,200 building for cash47,600 75,000 Issuance of long-term note payable in exchange for cash Issuance of 55,000 common stock 10,000