DALLAS Inc.s records contain the following information about the 2020 cash flows.

Cash and cash equivalents balance, December 31, 2019	$	39,300
Cash and cash equivalents balance, December 31, 2020		78,795
Cash received as interest		3,840
Cash paid for salaries		26,340
Bonds payable retired by issuing common shares (there was no gain or loss on the retirement)		281,340
Cash paid to retire long-term notes payable		91,965
Cash received from sale of equipment		39,300
Cash borrowed on six-month note payable		39,300
Land purchased and financed by long-term note payable		159,465
Cash paid for store equipment		35,715
Cash dividends paid		24,300
Cash paid for income taxes		39,000
Cash received from customers		363,840
Cash paid for merchandise		189,465
Depreciation expense		108,840

REQUIRED:

1. Prepare a statement of cash flows using the direct method. (DIRECT )

2. What notes would be required.

3. In 2-3 sentences explain why CFS are important for an organization.