The comparative balance sheet of Crossbow Novelties Corp. at December 31, 20X5, reported the following:

Required
1. Prepare the statement of cash flows of Crossbow Novelties Corp. for the year ended December31, 20X5. Use the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.
2. Evaluate Crossbow's cash flows for the year. Mention all 3 categories of cash flows and give the reason for your evaluation.

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December 31, 20X5 20X4 Current Assets: Cash and cash equivalents$28,800 $12,500 Accounts receivable....28,600 29,300 Inventorie...51,600 53,000 Prepaid expenses 4,200 3,700 Current Liabilities: Accounts payable$31,100 $28,000 Accrued liabilities..14,300 16,800 Cash purchase of 5,000 $124,000 Payment of cash dividends .17,000 52,000 Cash purchase of equipment55,000 Amortization expense.. building ....$ Net income. Issuance of common Issuance of long-term note stock for cah.105 payable to borrow cash .. 32,000 Retirement of note pay able Sale of long-term by issuing common stock.. 30,000 investment... 6,000 Depreciation expense..