Rocco's Gourmet Foods Inc. provides the following data from the company's records for the year ended July 31, 2017:
a. Salary expense, $105,300
b. Cash payments to purchase property, plant, and equipment, $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 property, plant, and equipment, $59,700, including $10,600 gain
f. Interest revenue, $12,100
g. Cash receipt of dividend revenue on 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. Advertising 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 shares, $107,300
v. Depreciation expense, $23,900
w. Cash sales, $146,000
x. Proceeds from issuance of common shares, $50,000
y. Payment of cash dividends, $50,500
z. Cash balance: July 31, 2016-$23,800; July 31, 2017-$31,400
Requirements
1. Prepare Rocco's Gourmet Foods Inc.'s statement of cash flows for the year ended July 31, 2017. Use the direct method for cash flows from operating activities. Follow the format of Exhibit 10A-3, but do not show amounts in thousands. Include an accompanying schedule of non-cash investing and financing activities.
2. Evaluate 2017 in terms of cash flow. Give reasons for your evaluation?