E5.16 (LO 3) (Preparation of a Statement of Cash Flows) A comparative statement of financial position for Orozco AG is presented below. December 31 2022 2021 71,000 110,000 Equipment 270,000 200,000 Accumulated depreciation-equipment (69,000) (42,000) 180,000 189,000 82,000 66,000 63,000 22,000 597,000 545,000 Assets Land Inventory Accounts receivable Cash Total Equity and Liabilities Share capital-ordinary (1 par) Retained earnings Bonds payable Accounts payable Total Additional information: 214,000 164,000 199,000 134,000 150,000 200,000 34,000 47,000 597,000 545,000 1. Net income for 2022 was 105,000. 2. Cash dividends of 40,000 were declared and paid. 3. Bonds payable amounting to 50,000 were retired through issuance of ordinary shares. Instructions a. Prepare a statement of cash flows for 2022 for Orozco AG. b. Determine Orozco's current cash debt coverage, cash debt coverage, and free cash flow. Comment on its liquidity and financial flexibility.

E5.16 (LO 3 ) (Preparation of a Statement of Cash Flows) A comparative statement of financial position for Orozco AG is presented below. Additional information: 1. Net income for 2022 was C105,000. 2. Cash dividends of C40,000 were declared and paid. 3. Bonds payable amounting to 50,000 were retired through issuance of ordinary shares. Instruetions a. Prepare a statement of cash flows for 2022 for Orozco AG. b. Determine Orozco's current cash debt coverage, cash debt coverage, and free cash flow. Comment on its liquidity and financial flexibility