10 Beach Hut Statement of Cash Flows For the Year ending December 31, 2014 Operations Net Income $ 6,761 Adjustments to Cash Basis: Amortization $6,106 Accounts Receivable ($13,130) Inventory ($7,222) Prepaid Expenses $328 Accounts Payable $8,535 Net Cash Flow From Operations: $1,378 Financing Bank Indebtedness $8,798 Long-term Debt ($3,283) Capital Investment $5,580 Drawings ($3,283) Net Cash Flow From Financing: $7,812 Investing Fixed Assets ($7.221) Net Cash Flow $1,969 Beginning Cash + $1,970 Ending Cash $3,939 Please Answer the following 1. Determine if each line item is a source or a use of cash? 2. Determine if this this company is effective at what they do? Are they profitable? 3. Are their operations efficient? Where do funds come from and go to within operations? Is this good or bad? Why 4. Where do most of the funds come from and go to in the company overall? Is this good or bad? Why