The comparative balance sheet of Cross how Novelties Corp. at December 31. 2020, reported the following:

{Requirements}
1. Prepare the statement of cash flows of Crossbow Novelties Corp. for the year ended December 31, 2020. Use the indirect method to report cash flows from operating activities. Report non-cash investing and financing activities in an accompanying schedule.
2. Evaluate Crossbow's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.

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December 31 2020 2019 Current Assets: Cash and cash equivalents. $28,800 $12,500 Accounts receivable.. 28,600 29,300 Inventories, 51.600 53,000 Prepaid expenses Current Liabilities: Accounts payable.. 4,200 3,700 31,100 28,000 Accrued liabilities. Income tax payable. 14,300 16,800 11,000 14,300 Crossbow's transactions during 2020 included the following: Cash purchase of building. Net income.. $124,000 Depreciation expense $17,800 52,000 Payment of cash dividends 17,000 for cash... Issuance of common shares Stock dividend. Cash purchase of equipment 55,000 105,600 Issuance of long-term note 13,000 payable to borrow cash 32,000 Sale of long-term investment.......... 6,000 Repayment of note payable by issuing common shares....... 30,000