14 Assignment Ch 14 CP 14-8 Assume the following income statement and balance sheet information: Service revenue (all cash) Operating expenses Salaries (all cash) $175 85 Net income $90 2019 2020 Current assets Cash $1,250 $1,600 Short-term invest. 100 200 $1,800 $1,350 Liabilities Borrowings 1,000 600 Stockholders' equity Common stock Retained earnings 200 300 550 500 750 800 $1,350 $1,800 Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased. Required: 1. Calculate cash flow from operating activities. 2. Prepare the 2020 statement of changes in equity. 3. Calculate cash flow from financing activities. 4. (Appendix) Prepare a cash flow table. Show that cash effects net to $450 outflow. a