The income statement and additional data of One Stop, Inc., follow:

Additional data:
a. Collections from customers are $20,000 more than sales.
b. Payments to suppliers are $1,200 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,800 less than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets is $213,000. Of this amount, $133,000 is paid in cash and $80,000 by signing a long-term note payable.
f. Proceeds from sale of land total $28,000.
g. Proceeds from issuance of common stock total $33,000.
h. Payment of long-term note payable is $13,000.
i. Payment of dividends is $7,000.
j. Cash balance, June 30, 2011, was $10,000.

Requirements
1. Prepare One Stop, Inc.€™s statement of cash flows and accompanying schedule of non-cash investing and financing activities. Report operating activities by the direct method.
2. Evaluate One Stop€™s cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for yourevaluation.

One Stop, Inc. Income Statement Year Ended June 30, 2012 Revenues: Sales revenue Dividend revenue $275,000 7,500 $282,500 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense 106,000 50,000 28,000 12,500 1,000 10,500 Net income S 74,500