a$)$ Rick and Hailey sat down with a pot of locally roasted coffee $($sounds quite good actually$)$ to create a statement of cash flows $($SCF$)$ for fiscal $2015.$ Prepare the SCF in good form $($includes the headings of cash flow from$-$ operations, financing, investing$).$ Show any calculations made to support amounts included in the SCF$.$ You should include the variation for each of the long$-$term liabilities instead of summarizing the total amount for long$-$term liabilities as this will provide the needed detail to back up the financing activities undertaken.

HINT$-$ The best way to solve for the acquisition or disposal of property plant and equipment amount you may require is to start with the net book value of those assets at the beginning of the year $($$$308,464$ excluding Land of $$478,000$ which did not change$)$ and then considering the net gain of $$2,020(3,944-$$$1,924)$ and also depreciation taken $($as given in the income statement$).$ Now, by including a $$PLUG amount$$ this will lead you to balance to the year end amount for the net book value of $$303,305)$ and I will suggest that this PLUG amount will be either your acquisition or disposal of property plant and equipment. $($You do not need to detail whether it is related to Land improvements; Machinery and vehicle; or Equipment, just take the amount as a whole which relates to all three of them$).$

b$)$ You should now provide a brief overall assessment$/$interpretation by providing any two $$observations$$ that may be of use to Rick and Hailey regarding the SCF you prepared.

c$)$ For any net acquisition of property plant and equipment which are long$-$term assets $($namely Land improvements, Machinery and vehicle; Equipment$-$ as you found in a$)$ do you believe that it was appropriately financed with long$-$term liabilities or equity OR for any net disposal of property plant and equipment as you found in a$)$ do you believe that they paid down liabilities appropriately with the funds generated from that? $($ie: you would answer only for one of these as your conclusion would have either been a net acquisition or net disposal of property plant and equipment in a$).$