Data from the comparative balance sheet of Gibson?s Greenhouse, Inc., at May 31, 2018, follow:

Gibson?s Greenhouse, Inc.?s transactions during the year ended May 31, 2018, included:

Requirements

1. Prepare Gibson?s Greenhouse, Inc.?s statement of cash flows for the year ended May 31, 2018, using the indirect method to report cash flows from operating activities.

2. Evaluate Gibson?s Greenhouse, Inc.?s cash flows for the year. Mention all three categories of cash flows and give the reason(s) for your evaluation.

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May 31 Current Assets: Cash and Cash Equivalents . 2017 2018 $13,500 $ 4,100 21,500 Accounts Receivable . 14,400 54,900 53,700 Inventory.. Current Liabilities: Accounts Payable. Accrued Liabilities.. Income Tax Payable. $29,100 $28,400 16,500 14,700 8,000 4,400 Depreciation Expense. . $17,300 Purchase of building for cash .. Net Income .. Issuance of common stock. Payment of cash dividend... $30,500 Purchase of equipment for cash . Issuance of long-term note payable in exchange for cash. 18,300 107,500 73,000 ........ 53,000 14,000