Consider the following income statement for the year ended on 31/12/2021 (all data expressed in ): sales revenue 154,300 cost of sales - 73,600 gross profit 80,700 wages -23,560 administrative expenses -9,560 rent expenses -12,000 change in warranties provision -2,000 depreciation -20,000 operating profits 13,580 interest expenses -1,260 pre-tax profits 12,320 taxes (20%) -2,464 profits for the year 9,856 And the following balance sheets for the same company 31/12/2021 160,000 95,000 65,000 31/12/2020 130,000 75,000 55,000 5,670 34,500 4,000 15,746 12,340 23,670 0 24,050 PPE at cost accumulated depreciation PPE current assets: inventories receivables prepaid rent cash current liabilities: warranties provision payables non-current liabilities: bank loan 10% bond equity share capital retained profits 5,500 42,000 3,500 45,600 5,000 10,000 2,400 10,000 30,000 32,416 30,000 23,560 CH 43,300 During 2021, the company paid dividends for 1,000 to shareholders. Taxes are paid in full on the last day of December a) Prepare the cash flows statement for the year ended on 31/12/2021. What have been the main uses and sources of cash for the company during the year? [25 marks) b) Comment on the solvency and liquidity of the company using the ratios that you consider most appropriate. How have solvency and liquidity evolved in 2021? [10 marks]