Assess the abbreviated Statement of Cash Flows below, and state whether the company is financially healthy, or not, and explain two reasons for your choice.

ABC Inc.

Statement of Cash Flows

For the year-ended December 31, 2019

CFO

Net Income $ 40,000

Changes in Current Assets (100,000)

Changes in Current Liabilities (20,000)

Net CFO $ (80,000)

CFI

Purchase of Machinery $ (50,000)

Sale of Machinery 280,000

Net CFI $ 230,000

CFF Paid Long-Term Bank Loan $ (100,000)

Net CFF $ (100,000)

Change in cash during 2019 $ 50,000

January 1 Cash Balance 15,000

December 31 Cash Balance $ 65,000