part C

he comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2017 appear bele MADRASAH CORPORATION BALANCE SHEETS Assets Dec. 31, 2017 Cash $ 20,000 Accounts receivable 106,000 Equipment 39,000 Less: Accumulated depreciation--equipment 17,000 Total $148,000 Liabilities and Stockholders' Equity Accounts payable $ 20,000 Common stock 100,000 Retained earnings 28,000 Total $148,000 Jan 1, 2017 $ 13,000 88,000 22,000 11,000 $112,000 Inc./Dec. $ 7,000 Inc. 18,000 Inc. 17,000 Inc. 6,000 Inc. $ 15,000 80,000 17,000 $112,000 5,000 Inc. 20,000 Inc. 11,000 Inc. Net income of $44,000 was reported, and dividends of $33,000 were paid in 2017. New equipment was purchased and none was sold. Instructions (a) Prepare a statement of cash flows for the year 2017. (b) Compute the current ratio (current assets + current liabilities) as of January 1, 2017, and December 31, 2017, and compute free cash flow for the year 2017. (c) In light of the analysis in (b), comment on Madrasah's liquidity and financial flexibility