The income statement and additional data of One Stop, Inc., follow:

Additional data:
a. Collections from customers are $20,000 more than sales.
b. Payments to suppliers are $1,200 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,800 less than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets is $213,000. Of this amount, $133,000 is paid in cash and $80,000 by signing a long-term note payable.
f. Proceeds from sale of land total $28,000.
g. Proceeds from issuance of common stock total $33,000.
h. Payment of long-term note payable is $13,000.
i. Payment of dividends is $7,000.
j. Cash balance, June 30, 2011, was $10,000.

Requirements
1. Prepare One Stop, Inc.€™s statement of cash flows and accompanying schedule of non-cash investing and financing activities. Report operating activities by the direct method.
2. Evaluate One Stop€™s cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for yourevaluation.

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One Stop, Inc. Income Statement Year Ended June 30, 2012 Revenues: Sales revenue Dividend revenue $275,000 7,500 $282,500 Expenses: Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense 106,000 50,000 28,000 12,500 1,000 10,500 Net income S 74,500