Exercise 1 (85 points) Sauder Corporation reports the following information: Net income HK$950,000 Depreciation expense 170.000 Decrease in accounts payable 96 000 Required: Identify the amount of cash provided by operating activities of Sander Corporation You should prepare only operating activities section of cash flow Exercise 2 (15 points) a. What is the purpose of the statement of cash flows? b. Differentiate between investing activities, financing activities and operating activities. c Identify the major steps involved in preparing the statement of cash flows. Bonus question (10 points) In which section of the Cash flow Statement should the following cash and non-cash transactions appear Transaction Activity operating investing or financing) Amortization expense Decrease in accounts receivable Issuance of common stock Payment of cash dividends Purchase of equipment