Border Collie Business has asked for your assistance in preparing its cash flow statement for 20X3. Among other items, its 20X3 income statement shows sales revenue (net) of \(\$ 135000\), cost of goods sold of \(\$ 72000\) and salaries expense of \(\$ 36800\). You analyse its \(20 \mathrm{X} 3\) beginning and ending balance sheets and find a beginning cash balance of \(\$ 16200\), an increase in accounts receivable of \(\$ 13600\), an increase in inventory of \(\$ 4400\), an increase in accounts payable of \(\$ 9200\), and a decrease in salaries payable of \(\$ 4200\). Further investigation shows the owner withdrew \(\$ 24000\) and that the business sold land for \(\$ 11000\), issued a note payable for \(\$ 16000\) and purchased a van for \(\$ 29600\). Required:

a Using your findings, prepare the business' \(20 \mathrm{X} 3\) cash flow statement.

b Calculate the business' \(20 \mathrm{X} 3\) operating cash flow margin. If the business' operating cash flow margin was 10.1 per cent in 20X2, what is your evaluation of the business' liquidity in 20X3?