Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020 Increase/(Decrease) Assets Cash Accounts Receivable Inventories 215,800 208,300 259,300 295,800 348,800 395,500 Prepaid expenses 43,950 30,500 Intangible assets 185,450 185,450 Plant assets, net 1,000,000 895,500 Total Assets 2,053,300 2,011,050 Liabilities Accounts payable 245,500 263,330 Accrued liabilities 410,440 486,530 Income tax payable 135,940 125,250 Long-term notes payable 910,675 864,575 Stockholders' Equity Common Stock 310,000 258,500 Retained earnings 495,325 324,168 Treasury stock (454,580) (311,303) ?????? ???? ??? Total liabilities and stockholders' equity 2,053,300 2,011,050 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets Total revenues and gains 2,432,502 125,250 2,557,752 Expenses Cost of goods sold 1,390.000 Depreciation expense 174,350 Other operating expense 525,000 Total expenses 2,089,350 Income before income taxes 468.402 Income tax expense 225,000 Net Income 243,402 Notes Acquisition of plant asset during 2021 498,850 Sale proceeds from sale of plant asset 345,250 Receipt for issuance of notes payable 556,100 Payment for note payable 510,000 Dividend paid 72,245 Book value of equipment sold 220,000 1. Answer the following questions for the directors: A. True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? B. True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? C. True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? D. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E. True or false, buying property, plant and equipment would be considered a cash outflow from financing? F. True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? G. True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company, would this transaction be shown in the investing activities section of the statement of cash flows