Below are the statements of financial position of ABC Ltd for the financial year ending 31 December 2019 and 2018 together with additional information related to other events in the 31 December 2019 financial year. ABC Balance Sheet as at 31 December 2019 2019 2018 Assets Cash Accounts receivables Inventory Prepaid expenses Long-term investments Land Buildings and equipment Accumulated depreciation TOTAL ASSETS 30 000 410 000 300 000 20 000 50 000 560 000 2 000 000 -800 000 2 570 000 50 000 460 000 320 000 15 000 25 000 300 000 1 900 000 -770 000 2 300 000 Liabilities & Equity Accounts payable Accrued Liabilities Bonds issued Long term loan Ordinary Share capital, R2 par value Paid-in-capital in excess of par value Retained earnings TOTAL LIABILITIES & EQUITY 300 000 40 000 500 000 150 000 200 000 710 000 670 000 120 000 50 000 800 000 0 160 000 550 000 620 000 2 570 000 2 300 000 Additional Information about 2019 transactions and events Net income was $110 000 Depreciation expense on buildings and equipment was $60 000 Sold equipment with a cost of $50 000 and accumulated depreciation of $30 000 for cash of $17 000 Declared and paid dividends of $60 000 3 Issued a $150 000 long-term loan payable to acquire buildings and equipment. Cash was paid to suppliers. Purchased long-term investment for $25 000 Paid $300 000 on the bonds payable. Issues 20 000 shares of $2 par value ordinary shares for $200 000 Purchased land for $260 000 . REQUIRED Marks 0 Prepare the cash flow statement for ABC for the year ended 31 December 2019. () Calculate the liquidity and solvency ratios of ABC or both years. Analyse the cash flow statement in (i) and ratios in (ii) above and write a (ii) report explaining the liquidity and solvency positon of ABC