Complete the Memo to Will Harden using the statement of cash flows attached for Computer Services Company. Describe in no more than a two page memo to Will Harden the purpose of the statement of cash flows and why 3 or 4 of the adjustments were made.

F unication Activity CT17.7 Will Hardin, the owner-president of Computer Services Company, is unfamiliar with the statemer of cash flows that you, as his accountant, prepared. He asks for further explanation. Instructions Write him a brief memo explaining the form and content of the statement of cash flows as shown in Illustration 17.13. TION 17.13 of cash flows, lirect method Computer Services Company Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2020 $145,000 $ 9,000 3,000 10,000 (5,000) (4,000) 16,000 (2.000) 27.000 172.000 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Loss on disposal of plant assets Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Cash flows from investing activities Purchase of building Purchase of equipment Sale of equipment Net cash used by investing activities Cash flows from financing activities Issuance of common stock Payment of cash dividends Net cash used by financing activities Net increase in cash Cash at beginning of period Cash at end of period UL HINT at in the investing and g activities sections, numbers indicate flows (receipts), and e numbers indicate flows (payments). (120,000) (25,000) 4,000 (141.000) 20,000 (29,000) (9,000 22,000 33,000 $ 55,000 Noncash investing and financing activities Issuance of bonds payable to purchase land $110,000