Salza Technology Corporation increased its sales from $375,000 in 2015 to $450,000 in 2016 as shown in the firm€™s income statements  resented below. LeAnn Sands, chief executive officer and founder of the firm, expressed concern that the cash account and the firm€™s marketable securities declined substantially between 2015 and 2016. Salza€™s complete balance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology.

A. Prepare a statement of cash flows for 2016 for Salza Technology Corporation.

B. Provide a brief description of what happened in terms of cash flows (both inflows and outflows) for Salza between 2015 and 2016.  

C. Use your calculations from Part A for cash flows from operating and investing activities to indicate the extent to which Salza was building or burning cash in 2016.
D. Convert the 2016 annual cash build or cash burn to a monthly rate. If cash flow activities relating to operations and investing for 2016 continue into 2017, indicate (1) how long it will be before Salza runs out of cash (if Salza is burning cash) or (2) the expected 2017 year-end cash account balance if Salza is building cash. Assume no changes in cash flows from financing activities in 2017 for calculation purposes.

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SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENTS FOR YEAR ENDED DECEMBER 31 (IN $ THOUSANDS) 2015 2016 Net sales $375 $450 -270 Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation -225 150 180 -46 -46 -25 -30 Less: Interest Income before taxes 75 100 Less: Income taxes -20 -30 $ 55 $ 17 $ 70 Net income $ 20 Cash dividends BALANCE SHEETS AT END OF DECEMBER 31 (IN $ THOUSANDS) 2015 2016 Cash $ 39 $ 16 Accounts receivable 50 80 Inventories 151 204 Total current assets 240 300 Gross fixed assets Less accumulated 200 290 -95 -125 depreciation Net fixed assets 105 165 Total assets $345 $465 Accounts payable $ 10 $ 45 Bank loan 20 27 Accrued liabilities 10 23 Total current liabilities 60 95 Long-tem debt 15 15 Common stock 85 120 Retained earnings Total liabilities and equity 185 235 $345 $465 8 되국 위에 의웨R의B