(Learning Objectives 2, 3, 4, 5, 7: Preparing and analyzing the statement of cash fl ows—indirect method) The comparative balance sheets of Medford Movie Theater Company at June 30, 20X6 and 20X5, reported the following:

■ writing assignment

■ spreadsheet Medford’s transactions during the year ended June 30, 20X6, included the following:

❙ Requirements 1. Prepare Medford Movie Theater Company’s statement of cash fl ows for the year ended June 30, 20X6, using the indirect method to report cash fl ows from operating activities.

Report non-cash investing and fi nancing activities in an accompanying schedule.

2. Evaluate Medford’s cash fl ows for the year, including its free cash fl ow and cash realization ratio. Review all three categories of cash fl ows and give the reason for your evaluation.