The comparative balance sheets of Medford Movie Theater Company at June 30, 2010 and 2009, reported the following:

Medford€™s transactions during the year ended June 30, 2010, included the following:

Requirements
1. Prepare Medford Movie Theater Company€™s statement of cash flows for the year ended June 30, 2010, using the indirect method to report cash flows from operating activities.
Report noncash investing and financing activities in an accompanying schedule.
2. Evaluate Medford€™s cash flows for the year. Mention all three categories of cash flows and give the reason for yourevaluation.

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2010 2009 Current assets: Cash and cash equivalents Accounts receivable 14,000 63,000 17,200 21,700 60,800 8,000 Prepaid e Current liabilities: Accounts payabl Accrued liabilities Income tax payable $58,000 $55,900 47,400 10,500 57,400 6,500 Acquisition of land $13,400 15,600 6,000 Cash purchase of building.... $9,000 ..50,000 Sale of long-term investment... by issuing note payable..$115,000 Depreciation expense Amortization expense.6 Payment of cash dividend.34,000 Net Cash purchase of Issuance of common cquipment 45,600 Issuance of long-term note Stock dividend 9,000 payable to borrow cash26,000