Accountants for Direct Builders' Supply Ltd. have developed the following data from the company's accounting records for the year ended April 30, 2017:
a. Credit sales, $728,125.
b. Income tax expense and payments, $47,375.
c. Cash payments to acquire property, plant, and equipment, $49,250.
d. Cost of goods sold, $478,250.
e. Cash received from issuance of long-term debt, $85,000.
f. Payment of cash dividends, $80,500.
g. Collection of interest, $34,250.
h. Acquisition of equipment by issuing short-term note payable, $40,500.
i. Payment of salaries, $129,500.
j. Cash received from sale of property, plant, and equipment, $28,000, including an $8,500 loss.
k. Collections on accounts receivable, $578,250.
l. Interest revenue, $4,750.
m. Cash receipt of dividend revenue on investment in shares, $25,125.
n. Payments to suppliers, $460,625.
o. Cash sales, $214,875.
p. Amortization expense, $78,500.
q. Cash received from issuance of short-term debt, $69,500.
r. Payments of long-term debt, $62,500.
s. Interest expense and payments, $16,625.
t. Salaries expense, $119,125.
u. Collections of notes receivable, $35,000.
v. Cash received from sale of investments, $11,375, including $2,500 gain.
w. Payment of short-term note payable by issuing long-term note payable, $78,750.
x. Cash balance:
May 1, 2016-$99,125
April 30, 2017-$?
Required
1. Prepare Direct Builders' Supply Ltd.'s cash flow statement for the year ended April 30, 2017, using the direct method for the operating activities section. Include a note regarding the noncash investing and financing activities.
2. Evaluate 2017 from a cash flow standpoint. Give your reasons.