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

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

Requirements
1. Prepare Sterling 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 Sterling€™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..n Inventory Current Liabilities: Accounts Payable. Accrued Liabilities Income Tax Payable 2012 2011 $13,100 4,400 14,600 21,500 54,900 53,500 ..$29,500 $28,400 14,000 16,900 8,300 4,700 Payment of cash dividend$33,000 Depreciation Expense17,500 Purchase of Purchase of 78,800 building for cash47,800 74,000 Issuance of long-term Net Income Issuance of note payable in exchange for cash 56,000 common stock 13,500