KLM, Inc.'s Comparative Balance Sheets for December 31, 2022 and 2021, are presented below. Additional information about KLM'a operations during 2016 is as follows: (1) Net Income $56,000; (2) building and equipment depreciation expense amount, $30,000; and $6,000 respectively; (3) equipment that cost $27,000 with accumulated depreciation of $25,000 sold at a gain of $10,600; (4) purchased an equipment for $25,000; (5) patent amortization, $6,000;(6) purchase of patent, $2,000; (7) funds borrowed by signing notes payable, $50,000;(8) paid-down notes payable, $30,000; (9) land and building purchased for $324,000 by signing a mortgage for the total cost; (10) 3,000 shares of $20 par value common stock issued for total of $100,000; and (11) paid cash dividend, $18,000. Net Sales for the year, $1,120,000. a- Using indirect method, prepare a Statement of Cash Flows for KLM, Inc. b- Why did KLM have an increase in cash of $134,400 when it recorded Net Income of only $56,000. Discuss and interpret. c- Compute and assess Cash Flow Yield; Cash Flows to Sales, Cash Flows to Assets and Free Cash Flow for 2016 . What is your assessment KLM's cash generating ability? KLM, Inc.'s Comparative Balance Sheets for December 31, 2022 and 2021, are presented below. Additional information about KLM'a operations during 2016 is as follows: (1) Net Income $56,000; (2) building and equipment depreciation expense amount, $30,000; and $6,000 respectively; (3) equipment that cost $27,000 with accumulated depreciation of $25,000 sold at a gain of $10,600; (4) purchased an equipment for $25,000; (5) patent amortization, $6,000;(6) purchase of patent, $2,000; (7) funds borrowed by signing notes payable, $50,000;(8) paid-down notes payable, $30,000; (9) land and building purchased for $324,000 by signing a mortgage for the total cost; (10) 3,000 shares of $20 par value common stock issued for total of $100,000; and (11) paid cash dividend, $18,000. Net Sales for the year, $1,120,000. a- Using indirect method, prepare a Statement of Cash Flows for KLM, Inc. b- Why did KLM have an increase in cash of $134,400 when it recorded Net Income of only $56,000. Discuss and interpret. c- Compute and assess Cash Flow Yield; Cash Flows to Sales, Cash Flows to Assets and Free Cash Flow for 2016 . What is your assessment KLM's cash generating ability