Based on the information , 1.prepare A one-year (2017) cash flow statement (using the "indirect" method)

2.In one paragraph, provide your opinion on Phenomenexs financial condition at the end of 2017. Use specific details from the financial statements to justify your answer.

INCOME STATEMENT (for the period ending December 31) (in thousands) 2016 $135,800 111,000 246,800 149,500 97,300 2015 $136,900 97,500 234,400 135,900 98,500 2014 $134,700 75,900 210,600 115.100 95,500 Equinment revenue Drug Testing revenue Total revenue Cost of goods sold ross income Research & Development expense Bad debt expense Salary expense Rent expense Insurance expense Utilities expenses 11,488 12 52,800 21,000 4,900 1 300 91,500 5,800 11,189 10,489 51,400 20,500 4,800 1,500 89400 9,100 44,000 20,000 5,000 1,000 80,500 15,000 Total operating expenses Operating income 2640 3,160 2,880 6,220 3,100 11,900 Interest expense Pre-tax income Income tax expense 948 1,866 3,570 Net income 4,354 8.330 BALANCE SHEET (as of December 31) (in thousands) 2016 $50,121 98,007 182,232 17,985 Current assets Cash Accounts receivable, net Inventories Prepaid insurance Prepaid utilities 2015 $42,617 98,191 174,386 12,224 978 1939 Total current assets Equipment, net Total assets Current liabilities 349,323 114,506 463.829 329,357 111,788 441,145 Accounts payable Salary payable Current portion of LT debt $71,485 35,498 4,000 110,983 $57 763 37,917 4,200 99,880 Total current liabilities Long-term (LT) debt Total liabilities 83,747 194,730 73,778 173,658 Owners' equity Common stock (S0.01 par value) Additional paid in capital Retained earnings 150 268,362 587 269,099 150 268,362 1025 267,487 Total owners' equity Total liabilities & owners' equity 463.829 441,145 The following transactions took place during fiscal 2017 (all amounts are in thousands): 1. Phenomenex recognized total revenue of $245,900, of which S130,300 was equipment revenue. Phenomenex does not accept cash; all sales are credit sales. 2. During the year, Phenomenex collected $250,200 of accounts receivable and wrote off accounts receivable at the beginning of the year was $98,100. At the end of the fiscal year, Phenomenex recognized bad debt expense ofS15. 3. Phenomenex purchased $2,000 of manufacturing equipment during the year and paid equipment is used exclusively for producing inventory. Phenomenex depreciated its manufacturing equipment by S11,800 during the year. The balance in the equipment T- account at the beginning of the year was $142,300 4. Phenomenex paid $11,000 cash for research and development (R&D) activities during the year. Phenomenex expects its R&D to generate substantial future sales. nomenex does not immediately pay employees their salaries at the end of each pay period, but rather pays them one week after the end of the period. During the year, Phenomenex employees earned $60,000 in salaries. Phenomenex's manufacturing process is mainly automated so only $12,000 of the $60,000 is directly related to producing inventory. Phenomenex paid S54,000 cash for salaries owed during the year 6. Phenomenex started the year with no raw materias, no work in process, and $182,232 of finished goods inventory. At the end of the year, Phenomenex's raw materials account had an ending balance of $5,000, its work-in-process account had an ending balance of $1,700, and its finished goods account had an ending balance of $175,400. Cost of goods sold for the year was $152,032. All raw materials are purchased on account using accounts payable 7. Phenomenex's accounts payable balance at the end of the year was $70,320. 8. Phenomenex prepays for all insurance. The amount of cash paid for insurance during the year was S4,000. The ending balance in prepaid insurance was $16,900. 9. Phenomenex prepays cash for all utilities. The amount of cash paid for utilities during the year was $800. Utility expense recognized during the year was $1,200. 10. Rent expense for the year totaled $22,000 and was paid for with cash. Phenomenex does not prepay for rent. 11. At the very beginning of fiscal 2017, Phenomenex borrowed $5,000 from a local bank on a short-term basis. On the last day of fiscal 2017, Phenomenex paid $9,000 to the bank to repay the $5,000 borrowed at the beginning of the year and to pay the $4,000 listed as "current portion of LT debt" at the end of 2016. Phenomenex also paid the bank $2,200 cash for interest associated with all debt during the year. Phenomenex plans to pay 12. Phenomenex's income tax expense for the year was $210, which was paid with cash. 13. Phenomenex paid a cash dividend of S600 to shareholders at the end of the year. 14. At the end of fiscal 2017, investors paid $22,000 cash for 1,000 shares of Phenomenex stock. 15. Late in the fiscal year, Phenomenex signed an agreement with the Olympic Committee to supply drug-testing equipment for the upcoming Olympics. Phenomenex issued a press release valuing the deal at $5,000. INCOME STATEMENT (for the period ending December 31) (in thousands) 2016 $135,800 111,000 246,800 149,500 97,300 2015 $136,900 97,500 234,400 135,900 98,500 2014 $134,700 75,900 210,600 115.100 95,500 Equinment revenue Drug Testing revenue Total revenue Cost of goods sold ross income Research & Development expense Bad debt expense Salary expense Rent expense Insurance expense Utilities expenses 11,488 12 52,800 21,000 4,900 1 300 91,500 5,800 11,189 10,489 51,400 20,500 4,800 1,500 89400 9,100 44,000 20,000 5,000 1,000 80,500 15,000 Total operating expenses Operating income 2640 3,160 2,880 6,220 3,100 11,900 Interest expense Pre-tax income Income tax expense 948 1,866 3,570 Net income 4,354 8.330 BALANCE SHEET (as of December 31) (in thousands) 2016 $50,121 98,007 182,232 17,985 Current assets Cash Accounts receivable, net Inventories Prepaid insurance Prepaid utilities 2015 $42,617 98,191 174,386 12,224 978 1939 Total current assets Equipment, net Total assets Current liabilities 349,323 114,506 463.829 329,357 111,788 441,145 Accounts payable Salary payable Current portion of LT debt $71,485 35,498 4,000 110,983 $57 763 37,917 4,200 99,880 Total current liabilities Long-term (LT) debt Total liabilities 83,747 194,730 73,778 173,658 Owners' equity Common stock (S0.01 par value) Additional paid in capital Retained earnings 150 268,362 587 269,099 150 268,362 1025 267,487 Total owners' equity Total liabilities & owners' equity 463.829 441,145 The following transactions took place during fiscal 2017 (all amounts are in thousands): 1. Phenomenex recognized total revenue of $245,900, of which S130,300 was equipment revenue. Phenomenex does not accept cash; all sales are credit sales. 2. During the year, Phenomenex collected $250,200 of accounts receivable and wrote off accounts receivable at the beginning of the year was $98,100. At the end of the fiscal year, Phenomenex recognized bad debt expense ofS15. 3. Phenomenex purchased $2,000 of manufacturing equipment during the year and paid equipment is used exclusively for producing inventory. Phenomenex depreciated its manufacturing equipment by S11,800 during the year. The balance in the equipment T- account at the beginning of the year was $142,300 4. Phenomenex paid $11,000 cash for research and development (R&D) activities during the year. Phenomenex expects its R&D to generate substantial future sales. nomenex does not immediately pay employees their salaries at the end of each pay period, but rather pays them one week after the end of the period. During the year, Phenomenex employees earned $60,000 in salaries. Phenomenex's manufacturing process is mainly automated so only $12,000 of the $60,000 is directly related to producing inventory. Phenomenex paid S54,000 cash for salaries owed during the year 6. Phenomenex started the year with no raw materias, no work in process, and $182,232 of finished goods inventory. At the end of the year, Phenomenex's raw materials account had an ending balance of $5,000, its work-in-process account had an ending balance of $1,700, and its finished goods account had an ending balance of $175,400. Cost of goods sold for the year was $152,032. All raw materials are purchased on account using accounts payable 7. Phenomenex's accounts payable balance at the end of the year was $70,320. 8. Phenomenex prepays for all insurance. The amount of cash paid for insurance during the year was S4,000. The ending balance in prepaid insurance was $16,900. 9. Phenomenex prepays cash for all utilities. The amount of cash paid for utilities during the year was $800. Utility expense recognized during the year was $1,200. 10. Rent expense for the year totaled $22,000 and was paid for with cash. Phenomenex does not prepay for rent. 11. At the very beginning of fiscal 2017, Phenomenex borrowed $5,000 from a local bank on a short-term basis. On the last day of fiscal 2017, Phenomenex paid $9,000 to the bank to repay the $5,000 borrowed at the beginning of the year and to pay the $4,000 listed as "current portion of LT debt" at the end of 2016. Phenomenex also paid the bank $2,200 cash for interest associated with all debt during the year. Phenomenex plans to pay 12. Phenomenex's income tax expense for the year was $210, which was paid with cash. 13. Phenomenex paid a cash dividend of S600 to shareholders at the end of the year. 14. At the end of fiscal 2017, investors paid $22,000 cash for 1,000 shares of Phenomenex stock. 15. Late in the fiscal year, Phenomenex signed an agreement with the Olympic Committee to supply drug-testing equipment for the upcoming Olympics. Phenomenex issued a press release valuing the deal at $5,000