The income statement and additional data of Quik Shop, Inc., follow:

Additional data:
a. Collections from customers are $30,000 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 $208,000. Of this amount, $133,000 is paid in cash and $75,000 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 a long-term note payable is $13,000.
i. Payment of dividends is $8,000.
j. Cash balance, June 30, 2013, was $12,400.

Requirements
1. Prepare Quik Shop, Inc.€™s statement of cash flows and accompanying schedule of noncash investing and financing activities. Report operating activities by the direct method.
2. Evaluate Quik Shop€™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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A1 Quik Shop, Inc. Income Statement Year Ended June 30, 2014 Revenues: Sales revenue 275,000 7500 282,500 Expenses: 6 7Salary expense Dividend revenue Cost of goods solo Depreciation expense 106,000 50,000 14,000 12,500 1,000 Advertising expense 10 Interest expense Income tax expense 210,000 72,500 12 Net income