The comparative balance sheets of Barberton Movie Theater Company at September 30, 2016 and 2015, reported the following:

Barberton's transactions during the year ended September 30, 2016, included the following:

Requirements
1. Prepare Barberton Movie Theater Company's statement of cash flows for the year ended September 30, 2016, using the indirect method to report cash flows from operating activities. Report noncash investing and financing activities in an accompanying schedule.
2. Evaluate Barberton's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.

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A1 B. September 30 2016 2015 3 Current assets 4Cash and cash equivalents 5 Accounts receivable 6 Inventories 7 Prepaid expenses 8 Current liabilities: 3,800 $ 16,000 14,500 21,600 60,400 17,2001,500 63,900 Accounts payable $ 58,000$56,000 37,200 3,30010,300 0 Accrued liabilities 47,200 11 Income tax payable 12 Acquisition of land Proceeds from sale of long by issuing note payable. $109,000 16,300 15,700 28,000 Cash purchase of building... 44,000 Net income58,000 term investment Depreciation expense 6,000 Payment of cash dividend.. Cash purchase of equipment 59,100 Issuance of common Issuance of long-term note stock for cash.15,000 17,000 payable to borrow cash 45 Stock dividend.