The 2014 comparative balance sheet and income statement of Orangeville Group Inc. follow:

Orangeville Group had no noncash investing and financing transactions during 2014. During the year, there were no sales of land or plant and equipment, no issuances of notes payable, and no repurchase of common shares.
Required
1. Prepare the 2014 cash flow statement, formatting operating activities by the direct method.
2. Evaluate the 2014 cash flow for this company.

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ORANGEVILLE GROUP INC Balance Sheet December 31,2014 and 2013 2014 2013 Current assets Cas h and cash equivalents Accounts receivable Interest receivable Inventories Prepaid expenses $ 47,000 415,000 6,000 993,000 17,000 1,009,000 401,000 $2,888,000 $ 156,000 431,000 9,000 899,000 22,000 937,000 200,000 $2,654,000 Plant and equipment, net Land Total assets Current liabilities Accounts payable In ble terest paya Salaries payable Other accrued liabilities Income tax payable $ 114,000 63,000 71,000 181,000 73,000 $ 179,000 67,000 14,000 187,000 38,000 Long-term liabilities Notes payable 450,000 650,000 Shareholders' equity Common shares Retained earnings 1,411,000 525,000 $2,888,000 1,223,000 296,000 $2,654,000 Total liabilities and shareholders' equity ORANGEVILLE GROUP INC Income Statement For the Year Ended December 31, 2014 Revenues Sales revenue Interest revenue $4,380,000 17,000 4,397,000 Total revenues Expenses: Cost of goods sold Salaries expense Amortization expense Other operating expenses Interest expense Income tax expense $1,952,000 814,000 253,000 497,000 246,000 169,000 Total expenses Net income 3,931,000 $ 466,000