5. Answer the following questions using the incomplete statement of cash flows for the Zany Company provided on page 88. a. If cash is equal to $57,544 at December 31, 2019, what did cash equal at December 31, 2018? b. If net cash provided by operating activities is $186,448, what is net income? c. Why is depreciation expense treated as an add back to net income in order to determine net cash provided by operating activities? The Zany Company Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in sales taxes payable $ 48,557 (16,321) (18,500) 6,941 550 21,227 186,448 Net cash provided by operating activities Cash flows from investing activities: Acquisition of new facility Proceeds from fire insurance settlement Net cash outflow from investing activities (250,000) 100,000 (150,000) Cash flows from financing activities: Proceeds from new facility mortgage Payment of old facility mortgage Net cash inflow from financing activities 50,000 (42,155) 7,845 Net increase in cash $ 44,293