1. (50 pts) Technology Corporation increased its sales from $375,000 in 2012 to $450,000 in2013 as shown in the firm's income statements presented below. LaAnn Sands, CEO and founder of the firm, expressed concern that the cash account and the firm's cash declined substantially between 2012 and 2013. 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. SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN $ THOUSANDS) 2012 2013 Net sales $375 $450 Less: Cost of goods sold -225 -270 Gross profit 150 180 Less: Operating expenses -46 -46 Less: Depreciation -25 -30 Less: Interest -4 -4 Income before taxes 75 100 Less: Income taxes -20 -30 Net income Cash dividends $55 $17 $ 70 $20 BALANCE SHEETS AS OF DECEMBER 31 (IN $ THOUSANDS) 2012 2013 Cash $ 39 $ 16 Accounts receivables 50 80 Inventories 151 204 Total current assets 240 300 Gross fixed assets 200 290 Less: accumulated depreciation -95 -125 Net fixed assets 105 165 Total assets $ 345 $ 465 Account payable $ 30 $ 45 Bank loan Accrued liabilities Total current liabilities Long-term debt 20 27 10 23 60 95 15 15 Common stock 85 120 Retained earnings 185 235 Total liabilities and equity $ 345 $ 465