Cash Accounts receivable FV-NI investments Inventory Prepaid rent Prepaid insurance Supplies Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents Accumulated amortization-patents Total assets Temporary bank overdraft Accounts payable Income tax payable Salaries and wages payable Ashley Limited Trial Balance December 31, 2023 and 2022 Short-term notes payable (trade) Long-term notes payable (non-trade) Deferred tax liability Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Administrative expenses Salaries and wages expense Depreciation and amortization expenseshem now bornionas bar Income before taxes Income tax expense Net income Ashley Limited Income Statement Year Ended December 31, 2023 Total operating expenses Income from operations Other revenues/expenses Gain on disposal of land 1991 wib Investment income (Note 1) bogato cond Interest expense boiskeb inomaista on my dotdw gnibulon busto 2023 $ 25,400 13,500 20,000 42,000 7,000 2,100 1,000 125,000 350,000 (105,000) 525,000 (130,000) 90,000 (45,000) $921,000 STRE -0- 22,000 5,000 5,000 10,000 60,000 30,000 375,000 260,000 154,000 $921,000 $ $ 39,200 124,700 92,000 40,500 8,000 6,400 (41,750) 2022 -0- 16,950 30,000 35,000 12,000 900 750 175,000 350,000 (87,500) 400,000 (112,000) 90,000 (40,000) $871,100 12,000 20,000 6,000 1,000 10,000 70,000 25,000 375,000 237,500 114,600 $871,100 $1,160,000 (748,000) 412,000 (296,400) 115,600 (27,350) 88,250 (29,400) $ 58,850 Note 1: Investment income generated by FV-NI investments includes dividend income of $2,400 and a gain on disposal of investments of $4,000.

Note 1: Invesusent income gencrated by FV.-NI imedments inclodes dividend income of 52,400 and a pain on disposal of investments of 54,000 . Instructions a. Prepare a statement of cash flows for Ashley using the direct method, accompanied by a schedule that provides cash flow from operations using the indirect approach. b. Does Ashley have any options available for the classification of interest and dividends paid or received? c. Prepare a memo for top management that summarizes and comments on Ashley's cash activities in 2023