Alta Vista Co. uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2020. Alta Vista Co. Balance Sheet December 31, 2020 2020 2019 Change? Cash $39,000 $ 18,000 Accounts receivable 36,000 35,000 Inventory 53,000 25,000 Property, Plant & Equipment (net) 120.000 90,000 Total assets $248,000 $168.000 Accounts payable Accrued liabilities Long-term notes payable Total liabilities $28,000 $6,000 15,000 1,000 80,000 90,000 $123,000 $ 97,000 Common shares $32,000 $ 17,000 Retained earnings 93,000 54,000 Total equity $125,000 $71,000 Total liabilities and equity $248,000 $168,000 Alta Vista Co. Income Statement For the Year Ended December 31, 2020 Revenues and gains: Sales revenue Interest revenue Gain on sale of plant assets Total revenues Expenses: $ 240,000 1,000 4,000 $245,000 Cost of goods sold $110,000 Salary expense 45,000 Depreciation expense 12,000 Other operating expenses 23,000 Interest expense 1,000 Income tax expense 5,000 Total expenses 196,000 Total expenses Net income Alta Vista Co. Statement of Retained Earnings For the Year Ended December 31, 2020 196,000 $ 49,000 Retained earnings, January 1, 2020 Net income $ 54,000 49,000 Dividends (10,000) Retained earnings, December 31, 2020 $93,000 Additional information provided: 0 Equipment costing $52,000 was purchased for cash. 9 Equipment with a net asset value of $10,000 was sold for $14,000 During 2019, the company repaid $30,000 of long-term notes payable. During 2019, the company borrowed $20,000 on a new note payable .The company traded common shares for a building valued at $150,000 Required: 1. Prepare a statement of cash flows in good form using DIRECT method, including any noncash investing and financing activities. (24 marks) 2. Perform the vertical analysis of Alta Vista Co.'s Balance Sheet for both years, round to two decimals. (15 marks) 3. Calculate the following ratios and provide your explanation for 2020: (6 marks) Current ratio Inventory turnover Accounts receivable turnover