H. Assets (30%) Use the following financial statements and additional information to (1) Prepare a complete statement of eash flows for the year ended December 31, 2015. The cash from or used in operating activities should be reported using the direct method. (2) Which activity (operating, investing or financing activity) provides the highest eash inflow? Do you think it is adequate that the company has its eash flow from that activity? Wescott Company Statements of Financial Position December 3+ 2015 2014 Cash... $-85,600 $ 65,200 Accounts receivable, net... 72,850 56,750 Merchandise inventory... +57,750 +44,850 Prepaid expenses.... 6,080 +2,680 Equipment... 280,600 245,600 Accumulated depreciation-Equipment.. (80,600) (97,600) Fotal assets......... $522,280 $427,480 Liabilities Accounts payable. S-52,850 8-45,450 Income tax payable... +5,240 12,240 Notes payable (long term).. 59,200 79,200 Total liabilities........ $127,290 $136,890 Equity Share Capital... 200,000 +50,000 Share Premium.. 53,000 40,000 Retained earnings. +41,990 +00,590 .