Accountants for Kitchen Guys Builders' Supply Ltd. have developed the following data from the company's accounting records for the year ended April 30, 2014:

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, 2013-$99,125

April 30, 2014-$?

Required

1. Prepare Kitchen Guys Builders' Supply Ltd.'s cash flow statement for the year ended April 30, 2014. Follow the format of Exhibit 17-12, but do not show amounts in thousands. Include a note regarding the noncash investing and financing activities.

2. Evaluate 2014 from a cash flow standpoint. Give your reasons.

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EXHIBIT 17-12 Cash Flow Statement (Direct Method for Operating Activities) CAPILANO LTD. Cash Flow Statement For the Year Ended December 31, 2014 Cash flows from operating activities Receipts: (In thousands) Collections from customers $650 Interest received on notes receivable 24 Dividends received on investments in shares 22 Total cash receipts Payments: To suppliers for merchandise for resale To suppliers for operating expenses To employees $696 (270) (44) (140) (38) (36) For interest For income tax Total cash payments Net cash inflow from operating activities Cash flows from investing activities Acquisition of property, plant, and equipment, and intangible assets Loan to another company Cash received from selling property, plant, and equipment, and intangible assets Net cash outflow from investing activities Cash flows from financing activities Cash received from issuing common shares Cash received from issuing long-term debt Payment of long-term debt* Payment of dividends Net cash inflow from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of 2014 Cash and cash equivalents at end of 2014 (528) 168 (735) (26) 149 (612) 242 226 (27) (41) 400 (44) 101 $ 57