Accountants for Direct Builders’ Supply Ltd. have developed the following data from the company’s accounting records for the year ended April 30, 2020:

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, 2019—$99,125

April 30, 2020—$ ?

Required

1. Prepare Direct Builders’ Supply Ltd.’s cash flow statement for the year ended April 30, 2020, using the direct method for the operating activities section. Include a note regarding the non-cash investing and financing activities.

2. Evaluate 2020 from a cash flow standpoint. Give your reasons.