The income statement and additional data of Rayborn Services, Inc. follow:

Additional data follow:
a. Acquisition of plant assets totaled $116,000. Of this amount, $101,000 was paid in cash and a $15,000 note payable was signed for the remainder.
b. Proceeds from the sale of land totaled $22,000. No gain was recognized on the sale.
c. Proceeds from issuance of common shares total $34,000.
d. Payment of long-term note payable was $15,000.
e. Payment of dividends was $14,000.
f. Data from the comparative balance sheet follow:

Requirements
1. Prepare Rayborn Services€™ cash flow statement for the year ended April 30, 2014, using the indirect method.
2. Evaluate Rayborn Services€™ 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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Rayborn Services, Ind Income Statement Year Ended April 30, 2014 Revenues Sales Revenue Dividend Revenue $262,000 11,000 Total Revenues $273,000 Expenses Cost of Goods Sold Salary Expense Depreciation Expense Advertising Expense Interest Expense Income Tax Expense $107,000 60,000 18,000 14,000 9,000 8,000 Total Expenses 216,000 $57,000 Net Income June 30 Current Assets: Cash 2014 2013 Accounts Receivable... Inventory. $30,000 $21,000 42,000 57,000 89,000 83,000 Current Liabilities: Accounts Payable. $38,000 $31,000 12,000 20,000