The items to be included in the Nadine's Giftware Business' cash flow statement for the current year are:

a Investment by owner, \(\$ 6000\)

b Payments to employees, \(\$ 16200\)

c Receipt from sale of investments, \(\$ 2600\)

d Ending cash balance, \(\$ 14600\)

e Payments for inventory, \(\$ 12000\)

f Cash collected from customers, \(\$ 34800\)

g Withdrawals by owner, \(\$ 3600\)

h Payment for purchase of warehouse, \(\$ 18400\)

i Payment of interest, \(\$ 1000\).

Required:

i Prepare the business' cash flow statement.

ii If the average owner's equity was \(\$ 31000\), calculate the business' cash return on owner's equity. What is your evaluation if last year the business' cash return was 17.2 per cent?