Coyle Products Ltd. accountants have developed the following data from the company's accounting records for the year ended July 31, 2014:

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, $112,800.

e. Proceeds from sale of property, plant, and equipment, $358,200.

f. Interest revenue, $72,600.

g. Cash receipt of dividend revenue on investments in shares, $66,200.

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, $20,200.

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, $446,400.

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

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

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

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

w. Payment of cash dividends, $340,000.

x. Cash balance: July 31, 2013-$654,800 July 31, 2014-$?

Required

1. Prepare Coyle Products Ltd.'s cash flow statement for the year ended July 31, 2014. Follow the format of Exhibit 17-12, but do not show amounts in thousands. Include a note to the financial statements giving a summary of noncash investing and financing activities.

2. Evaluate 2014 in terms of cash flow. Give your reasons.

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EXHIBIT 17-12 Cash Flow Statement (Direct Method for Operating Activities) CAPILANO LTD. Cash Flow Statement For the Year Ended December 31, 2014 Cash flows from operating activities (In thousands) Receipts: Collections from customers $650 Interest received on notes receivable 24 Dividends received on investments in shares 22 Total cash receipts Payments: To suppliers for merchandise for resale To suppliers for operating expenses To employees $696 (270) (44) (140) (38) (36) For interest For income tax Total cash payments Net cash inflow from operating activities Cash flows from investing activities Acquisition of property, plant, and equipment, and intangible assets Loan to another company Cash received from selling property, plant, (528) 168 (735) (26) and equipment, and intangible assets Net cash outflow from investing activities Cash flows from financing activities Cash received from issuing common shares Cash received from issuing long-term debt Payment of long-term debt* Payment of dividends Net cash inflow from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of 2014 Cash and cash equivalents at end of 2014 149 (612) 242 226 (27) (41) 400 (44) 101 $ 57