Case 23-2 Statement of Cash Flows Cindy Flores and Carlos Esteban are examining the following statement of cash flows for Miami clothes, Inc.'s first year of operations. The fiscal year is from March 1, Year 1 to February 28, Year 2 Cindy clayms that Miami's statement of Cash Flows is an excellent portrayal of a superb first year, with cash increasing $109,000. Carlos replies that it was not a superb first year-that the year was an operating fallure, the statesent was incorrectly presented, and $109,000 is not the actual increase in cash. Quentions: 1. With whom do you agree, Cindy or Carlos regarding the presentation of the Statement of Cash Flows? Explain your position. 2. Using the data provided, prepare a statement of Cash Flows in proper form using the direct method. (Hint-You will need to dotermine the Net Income/Loss for Miani Clothes, Inc.) 3. Is the net increase in cash of $109,000 as calculated correct? If not, what is the correct net increase in cash? 4. Was Miani Clothes, Inc.'s first year a success or failure? Explain your position