Sawyer Products Ltd.’s accountants have developed the following data from the company’s accounting records for the year ended July 31, 2020:

a. Salaries expense, $631,800.

b. Cash payments to purchase property, plant, and equipment, $1,035,000.

c. Proceeds from issuance of long-term debt, $264,600.

d. Payments of long-term debt, $142,800.

e. Proceeds from sale of property, plant, and equipment, $318,200.

f. Interest revenue, $72,600.

g. Cash receipt of dividend revenue on investments in shares, $56,200.

h. Payments to suppliers, $4,129,800.

i. Interest expense and payments, $226,800.

j. Cost of goods sold, $2,886,600.

k. Collection of interest revenue, $30,200.

l. Acquisition of equipment by issuing short-term note payable, $213,000.

m. Payment of salaries, $804,000.

n. Credit sales, $3,648,600.

o. Income tax expense and payments, $338,400.

p. Amortization expense, $309,600.

q. Collections on accounts receivable, $4,038,600.

r. Collection of long-term notes receivable, $486,400.

s. Proceeds from sale of investments, $538,200.

t. Payment of long-term debt by issuing common shares, $900,000.

u. Cash sales, $1,134,000.

v. Proceeds from issuance of common shares, $589,400.

w. Payment of cash dividends, $310,000.

x. Cash balance:

July 31, 2019—$654,800

July 31, 2020—$ ?

Required

1. Prepare Sawyer Products Ltd.’s cash flow statement for the year ended July 31, 2020, using the direct method for the operating activities section. Include a note to the financial statements giving a summary of non-cash investing and financing activities.

2. Evaluate 2020 in terms of cash flow. Give your reasons.