Bloomwash Corporation has prepared the following statement of cash flows for the year end, Bloomwash Corporation Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flow from Operating Activities Net Income $35,200 Adjustments to Reconcile Net Income to Net Cash 1 Provided (Used) by Operating Activities 2 Depreciation Expense 4,600 3 Gain on Sale of Equipment -7,300 4 Changes in Operating Assets and Liabilities 5 Increase in Accounts Receivable -22,000 16 Decrease in Merchandise Inventory 60,600 7 Decrease in Accounts Payable -7.500 8 Net Cash Provided (Used) by Operating Activities $63,600 9 20 Cash Flow from Investing Activities 21 Sale of machine 56,200 22 Purchase of Land & Building -186,000 23 Net Cash Provided (Used) by Investing Activities -129,800 24 25 Cash Flow from Financing Activities 26 Proceeds from Issuance of Common Stock 45,000 27 Proceeds from Notes Payable 62,000 28 Payment of Dividends -50,000 29 Net Cash Provided (Used) by Financing Activities 57.000 30 31 Net Increase (Decrease) in Cash -9,200 32 Cash at the Beginning of the Year 12.000 33 Cash at the End of the year $2.800 34 35 D E F G H Required a) The company had a total decrease in cash during the year of $9,200. What is the primary cause of this decrease in cash? b) Are there any concerns with operating activities? 5 3 3 1 Analysis 2 In a cash flow budgeting meeting the company's President argued that, "we could have taken a 3 larger loan to finance our land and building purchase in 2021. In fact, instead of borrowing only 4 $62,000, we should have asked for $186,000. That would have put us into a better cash flow -5 situation." Evaluate this comment from the President. How would a larger loan affect the cash 56 57 58