?B. Based on the statement prepare, explain to the CEO why cash decreased during a profitable year.

8 nel cash tlow from operations 22 Prepare a statement of cash flows LO2, 3, 4, 5, 6,7 The following is Folex Company's income statement and balance sheet (in millions): Income statement For the year ending 30 June 2016 S 750 450 300 100 $200 Sales Cost of goods sold Operating expenses Interest expense ncome tax expense Gross profit Income before interest and taxes Income before taxes Net income $ 185 75 $ 110 Balance Sheet 30 June 2016 2015 Cash Accounts receivable Inventory Prepaid insurance $ 80 115 190 32 417 1050 (140) 910 $ 45 155 225 Total current assets Property and equipment Accumulated depreciation 447 1 250 (175) 1075 Total property and equipment $1522 $ 120 155 275 400 675 525 322 847 $1 522 $1327 $ 135 175 310 325 635 475 217 692 $1327 Total assets Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Contributed capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity The following additional information is available i Operating expenses include $35 millon of depreciation ii Property and equipment were acquired for cash. iii Additional contributed capital was issued for cash. iv Additional cash was obtained by issuing bonds v Dividends were paid. The CEO has posed some questions regarding this years results. She is pleased that the profit margin is approaching 15 r cent. However, the decrease in the cash balance during such a profitable year troubles her. Required a Prepare a complete statement of cash flows for Folex using schedule showing operating cash flows using the indirect the direct method for operating cash flows. Prepare a separate method