Capaz company completed its statememt of earning and statement of financial position for 2018 and provodedthe following information:

Statement of Earnings for 2018

Service revenue $53,ooo

Expenses

Salaries $41,000

Depreciation 7,000

Amortization of copyrights 200

Other expenses 9,700 57,900

Net earnings (Loss) $4,900

Partial Statement of Financial Position 2018 2017

Account receivable $8,000 $15,000

Salaries payable 15,000 1,000

Other accured liabilities 1,000 5,100

In addition, Capaz bought a small service machine for $5,000.

Required:

1. Present the operating activities section of the statement of cash flows for Capaz Company using the indirect method.

2. What were the major reasons that Capaz was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net earnings important to financial analysts?

If you can provide the answers in Excel Sheet that would be great.