Rocco's Gourmet Foods, Inc., provides the following data from the company's records for the year ended July 31, 20X5:

a. Salary expense, $105,300

b. Cash payments to purchase plant assets, $181,000

c. Proceeds from issuance of note payable, $44,100

d. Payments of long-term note payable, $18,800

e. Proceeds from sale of plant assets, $59,700, including $10,600 gain

f. Interest revenue, $12,100

g. Cash receipt of dividend revenue on stock investments, $2,700

h. Payments to suppliers, $673,300

i. Interest expense and payments, $37,800

j. Cost of goods sold, $481,100

k. Collection of interest revenue, $11,700

l. Acquisition of equipment by issuing short-term note payable, $35,500 m.Payments of salaries, $104,000

n. Credit sales, $768,100

o. Loan to another company, $35,000

p. Income tax expense and payments, $56,400

q. Depreciation expense, $27,700

r. Collections on accounts receivable, $741,100

s. Loan collections, $74,400

t. Proceeds from sale of investments, $34,700, including $3,800 loss

u. Payment of long-term note payable by issuing preferred stock, $107,300

v. Amortization expense, $23,900

w. Cash sales, $146,000

x. Proceeds from issuance of common stock, $50,000

y. Payment of cash dividends, $50,500

z. Cash balance: July 31, 20X4- $23,800; July 31, 20X5-$31,400

Required

1. Prepare Rocco's Gourmet Foods, Inc.'s, statement of cash flows for the year ended July

31, 20X5. Use the direct method for cash flows from operating activities. Follow the format of Exhibit 12-13, but do not show amounts in thousands. Include an accompanying schedule of noncash investing and financing activities.

2. Evaluate 20X5 in terms of cash flow. Give your reasons.