Please review the following data from ABC Company's financial statements:

ABC Company	2021	2020
Sales	950,000	700,000
Net Income	250,000	200,000
Depreciation Expense	75,000	60,000
Accounts Receivable	200,000	90,000
Inventory	75,000	65,000
Accounts payable	80,000	120,000

Calculate the cash flow from operations for 2021 (2 marks).

Would you be concerned after calculating the cash flow from operations? Explain why or why not. (2 marks)

Calculate at least one ratio from the data above (1 mark).

How could stock based compensation casue management to make decisions not in line with shareholder interests? (1 mark)

You are on the compensation committee of comany ABC. Describe how you would propose management compensation to ensure long term alignment of management with shareholder goals. (2 marks)

Describe at least one failure of external auditors from the cases we have studied. How could this be mitigated? (2 marks)