CP 14-8Assume the following income statement and balance sheet information:

Service revenue (all cash)$175

Operating expenses Salaries (all cash)$ 85

Net income$90

2020 2019

Current assets

Cash$1,250$1,600

Shortterm invest.100200

$1,350 $1,800

Liabilities

Borrowings6001,000

Stockholders' equity

Common stock200300

Retained earnings550500

750 800

$1,350 $1,800

Other information: The shortterm investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non current. No gain or loss occurred when common stock was repurchased.

Required:

1. Calculate cash flow from operating activities

.2.Prepare the 2020 statement of changes inequity

.3.Calculate cash flow from financing activities.

4 .(Appendix) cash flow table. Show that cash effects net to a $450 outflow