Andres Corp.

Cash Flow Statement

For the Year Ended December $31,2023$

Cash flows from operating activities

Net income $$146,250$

Add $($subtract$)$ items that affect net income

and cash flow differently:

Amortization expense$$Equipment $$108,000$

Write$-$down $($loss$)$ of goodwill $16,000$

Increase in accounts receivable $(10,000)$

Decrease in inventory $322,000$

Increase in prepaid expenses $(11,000)$

Increase in accounts payable $74,000$

Increase in salaries payable $14,000513,000$

Net cash inflow from operating activities $659,250$

Cash flows from investing activities

Sale of equipment $$410,000$

Purchase of equipment $(580,000)$

Net cash outflow from investing activities $(170,000)$

Cash flows from financing activities

Payment of dividends $$(625,750)$

Payment of loan payable $(60,000)$

Sale of preferred shares $140,000$

Net cash outflow from financing activities $(545,750)$

Net increase $($decrease$)$ in cash $$(56,500)$

Cash and cash equivalents, January $1,202370,500$

Cash and cash equivalents, December $31,202314,000$

Q$.$Comment on the results indicated by the cash flow

The company $($ a$.$ decreased, b$.$ increased$)$ its total assets mostly due to the $($a$.$issue of additional share capital, b$.$ payment n the loans, c$.$sale of equipment, d$.$sale of merchandise inventory, e$.$ write$-$down of goodwill$).$ The cash and cash equivalents $($ a$.$declined, b$.$ increased$)$ during the$$ year, leaving $$\_\_\_$ in cash at year end.