Group Assign 2 Student_IAF 2.pdf Home Tools Group Assign 2 St... x Sign In 3 14 PCC Inc. is an importer and distributor of computer chips (integrated circuits used in computers). PCC started business this year. During its first year, 2000, PCC received three large shipments of chips from suppliers in Asia and sold those chips to small computer Po assemblers and retailers. PCC employs several buyers and salespeople. During the com- pany's first year the cost of chips fell substantially, but its selling prices so far have declined only slightly. Inventory and preliminary financial information related to PCC are given below. Inventory Information Inventory purchased during the year 2000: Purchase January 1 1,000 chips at $50 each Purchase 2 June 30 1,000 chips at $40 each Purchase 3 September 30 1,000 chips at $32 each Sales during 2000: January to June 800 chips at $100 each July to September 700 chips at $100 each November and December 200 chips at $90 each On hand at year end: 1,300 chips Preliminary Financial Information Year ended December 31, 2000 La Assets Cash $ 13 Accounts receivable 35 Inventory 44 Prepaid expenses 18 Equipment, at cost 100 Less accumulated amortization 10 Equipment, net book value 90 Total assets $ 200 Liabilities Accounts payable $ 22 Bank Loan - long-term 40 Shareholder's equity Common shares issued 130 Retained earnings 8 Total liabilities and shareholder's equity $ 200Group Assign 2 Student_IAF 2.pdf Home Tools Group Assign 2 St... x Sign In 4 14 Co Sales $ 168 Cost of sales 78 Gross profit 90 Operating expenses 30 Lo Selling expenses 36 Amortization expense Interest expense Net income before income taxes Income taxes Net income NOLA Required: Prepare a statement of cash flow. Comment on the information this statement provides to the users of PCC's financial statements. Follow the approach used in the posted video for Chap 22. Pa