The income statement and additional data of Flashpoint Consulting Ltd. follow:

Additional data:
a. Collections from clients were $114,000 more than revenues.
b. Increase in cash balance, $20,000.
c. Payments to employees are $8,000 less than salaries expense.
d. Interest expense and income tax expense equal their cash amounts.
e. Acquisition of computer equipment is $232,000. Of this amount, $202,000 was paid in cash, $30,000 by signing a long-term note payable.
f. Cash received from sale of land, $20,000.
g. Cash received from issuance of common shares, $84,000.
h. Payment of long-term note payable, $40,000.
i. Payment of cash dividends, $130,000.
j. Payments for rent and insurance were equal to expense.
k. Payment for office supplies was $12,000 more than expense.
Prepare Flashpoint Consulting Ltd.'s cash flow statement by the direct method and the note to the financial statements giving the summary of noncash investing and financing activities. Evaluate Flashpoint's cash flow for the year. Mention all three categories of cash flows and the reason for your evaluation.

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FLASHPOINT CONSULTING LTD Income Statement For the Year Ended September 30, 2014 Revenues Consulting revenue $548,000 Expenses Salaries expense Amortization expense Rent expense Office supplies expense Insurance expense Interest expense Income tax expense $296,000 58,000 14,000 16,000 4,000 4,000 36,000 428,000 $120,000 Net income