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Could you explain how the cash flow statement would be prepared for this company using indirect method? Land mar Total payable Lmg-tetm han payable Iota'

Could you explain how the cash flow statement would be prepared for this company using indirect method?

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Land mar" Total payable Lmg-tetm han payable Iota' stoat-oldeg equit, Total arya stocklWdevs' equity Other information is as follows: s 210,000 s 450.000 320.000 '200,003' E'D,oco ss.oco 250.000 s zoo,uoo nc,ooo Dividends ofS350,OOO were declared and paid during thc ycar, b. Operating expenses include $25,000 of dcprcciation, c. I-and was sold for its book value, and new plant and equipment were acquired cash. d. Pan of the bank loan was repaid, and additional common stock Was issucd tor cash. Thc president has asked you some questions about the year's results. She is very impressed With the profit margin of 14% (net income divided by sales revenue). Shc is bothered, howcvcr, by thc decline in the company's cash [lalancc during thc year. One Of thc conditions Of thc existing bank loan is that the company maintain a minimum cash balance Of Sl 00,000. Required I Prepare a statcment of cash flows iOr 2016 using thc direct method in thc Operating Activ- On the basis of your statement in part (l j, draft a brief memo to thc president to explain cash during such a profitable year. Include in your explanation any mendations improving thc company's cash flow in hiturc years.

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