The income statement and additional data of Floral World Ltd. follow:

Additional data:
a. Collections from customers are $30,000 more than sales.
b. Payments to suppliers are $1,000 more than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,000 more than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant and equipment is $150,000. Of this amount, $101,000 is paid in cash and $49,000 by signing a note payable.
f. Proceeds from sale of land total $24,000.
g. Proceeds from issuance of common shares total $30,000.
h. Payment of long-term note payable is $15,000.
i. Payment of dividends is $11,000.
j. Cash balance, June 30, 2016, was $20,000.
Requirements
1. Prepare Floral World Ltd.'s statement of cash flows and accompanying schedule of non-cash investing and financing activities. Report operating activities by the direct method.
2. Evaluate Floral World's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation?

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Floral World Ltd Income Statement For the Year Ended December 31, 2017 2 Revenues: 3 Sales revenue 229,000 4 Dividend revenue 15,000$ 244,000 5 Expenses 6 Cost of goods sold 7 Salary expense 8 Depreciation expense 9 Advertising expense 103,000 45,000 29,000 11,000 2,000 9,000 10 Interest expense 11 Income tax expense 12 13 199,000 $ 45,000 Net income