The income statement and additional data of Rayborn Services, Inc. follow:

Additional data follow:
a. Acquisition of plant assets totaled $116,000. Of this amount, $101,000 was paid in cash and a $15,000 note payable was signed for the remainder.
b. Proceeds from the sale of land totaled $22,000. No gain was recognized on the sale.
c. Proceeds from issuance of common shares total $34,000.
d. Payment of long-term note payable was $15,000.
e. Payment of dividends was $14,000.
f. Data from the comparative balance sheet follow:

Requirements
1. Prepare Rayborn Services€™ cash flow statement for the year ended April 30, 2014, using the indirect method.
2. Evaluate Rayborn Services€™ cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

Rayborn Services, Ind Income Statement Year Ended April 30, 2014 Revenues Sales Revenue Dividend Revenue $262,000 11,000 Total Revenues $273,000 Expenses Cost of Goods Sold Salary Expense Depreciation Expense Advertising Expense Interest Expense Income Tax Expense $107,000 60,000 18,000 14,000 9,000 8,000 Total Expenses 216,000 $57,000 Net Income June 30 Current Assets: Cash 2014 2013 Accounts Receivable... Inventory. $30,000 $21,000 42,000 57,000 89,000 83,000 Current Liabilities: Accounts Payable. $38,000 $31,000 12,000 20,000