CA233 (LO 2.0) (SCF Theory and Analysis of Transactions) Ashley Company is a young and growing producer of electronic measuring instruments and technical equipment. You have been retained by Ashley to advise it in the preparation of a statement of cash floves using the indirect method. For the fiscal year ended October 31, 2020, you have obtained the following information concerning certain events and transactions of Ashley 1. The amount of reported earnings for the fiscal year was $700,000, which included a deduction for a loss of $110,000 (see item 5 below). 2. Depreciation expense of $315,000 was included in the income statement 3. Uncollectible accounts receivable of $40,000 were written off against the allowance for doubtful accounts. Also, 1,000 of bad debt expense was included in determining income for the fiscal year, and the same amount was added to the allowance for doubtful accounts. 4. A gain of 36,000 was realised on the sale of a machine. It originally cost $75,000, of which $30,000 was undepreciated on the date of sale. 5. On April 1, 2020, lightning caused an uninnured building loss of $110,000 ($180,000 Lons, les reduction in Income taxes of $70,000). This loss was included in determining income as indicated in item 1 above 6. On July 3, 2020, building and land were purchased for $700,000. Ashley we in payment 875,000 cah, 8200,000 market price of its unissued common stock, and signed a $425,000 mortgage note payable 7. On August 3, 2020, 100,000 face value of Athley's sok convertible debentures was converted into $150,000 par value of its common stock. The bonds were originally sued at face value Instructions Explain whether each of the seven numbered items above is a cash intlow or outflow, and explain how it should be disclosed in Ashley's statement of cash flows for the fiscal year ended October 31, 2020. If any item is neither an intlow nor as outflow of cash, explain why it is not, and indicate the disclosure, if any, that should be made of the item in Ashley's statement of cash flows for the fiscal year ended October 31, 2020