A.   A Statement of Cash Flows for 2020 and 2019 using the indirect method.

a.   Explain why cash increased in 2020 and 2019 with reference to the cash flow analysis 

CASE - Financial Statements 2020 2019 2018 Income Statement: Sales 120,000 100,000 90,000 COGS -84,000 -70,000 -63,000 Gross Margin 36.000 30,000 27,000 Other Fixed Costs -16,000 -16,000 -16,000 Depreciation -5,000 -5,000 -4,000 EBIT 15,000 9,000 7,000 Interest -5,000 -5,000 -5,000 Earnings before Taxes 10,000 4,000 2,000 Taxes -3,000 -1,200 -600 Net Income 7,000 2,800 1,400 Dividends -3,500 -1,000 Retained Earnings 3,500 1,800 1,400