Please see attachment, prepare a cash flow statement using the indirect method.

Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group has supplied the limited additional investment needed by the company in the form of both equity and short- and long-term debt. Recently the company has developed a virtual keyboard (VK). The VK uses sophisticated artificial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to preset user guidelines. The VK even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagno proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond w market. To introduce the VK, the company will require significant outside investment. Nick has made the decision to seek this outside financing in the form of new equity investments and bank loans. Naturally, new investors and the banks will require a detailed financial analysis. Your employer, Angus Jones & Partners, LLC, has asked you to examine the financial statements provided by Nick. Here are the balance sheets for the two most recent years and the most recent income statement: Income Statement (in $ thousands) Sales Cost of goods sold Selling, general, and administrative Depreciation Operating income Other income EBIT Interest expense 7,557 4,456 848 248 2,005 75 2,080 137 Pretax income Taxes Current Deferred Net income 1,943 776 605 171 1,167 Dividends Retained earnings 292 875 rammer. The Over the years, ompany in the developed a virtual llow the nd grammatical es detailed stylistic diagnostics. Based on a a full generation beyond what is currently on the ment. uity investments nancial the financial ent years and the Current assets Cash and equivalents Accounts receivable Inventories Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets Uses Cash AR INV other FA AP Accrued Expenses Deferred Taxes LTD R/E Surplus Treasury Stock Total USES Balance Sheet (in $ thousands) 2015 452 716 641 92 1,901 4,148 1,340 2,808 793 3,601 5,502 2014 391 668 663 78 1,800 3,179 1,092 2,087 709 2,796 4,596 Current liabilities 61 Accounts payable 48 Accrued expenses (22) Total current liabilities 14 101 - Long-term liabilities - Deferred taxes 969 Long-term debt 248 Total long-term liabilities 721 84 Stockholders equity 805 Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock Total equity Total liabilities and shareholders equity 2015 2014 519 247 766 485 401 886 330 1,179 1,509 159 1,148 1,307 21 126 794 2,478 192 3,227 21 126 779 1,603 126 2,403 5,502 4,596 Sources 61 48 22 14 805 34 154 171 31 875 15 66 1,148 Total Sources 1,148 34 (154) (120) 171 31 202 15 875 66 824