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	$28,000	$ 6,000
Accrued liabilities	15,000	1,000
Long-term notes payable	80,000	90,000
Total liabilities	$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	$ 240,000
Interest revenue	1,000
Gain on sale of plant assets	4,000
Total revenues		$ 245,000
Expenses:
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
Net income		$ 49,000

Alta Vista Co.

Statement of Retained Earnings

For the Year Ended December 31, 2020

Retained earnings, January 1, 2020	$ 54,000
Net income	49,000
Dividends	(10,000)
Retained earnings, December 31, 2020	$ 93,000

Additional information provided:

• Equipment costing $52,000 was purchased for cash.
• 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

(I NEED ANSWER AS SOON AS POSSIBLE)