please use the information provided above and below. round 2 decimal places.

CASE: CASH FLOW PROBLEM?

A recent graduate from ACCT 1510 has given you an opportunity to determine what the changes were from 2022 to 2023 for UofU Inc. Provided is the statement of financial position and Statement of Earning as of May 31, 2023, with a comparative of 2022 (Exhibit 1 and 2). and prepare a Statement of Cash Flows using the indirect method. The company is a private enterprise and chooses to follow ASPE.

You will also need to evaluate the results from the Statement of Cash Flows, and summarize the changes that occurred. In addition, you will need to calculate the following ratios:

Current Ratio Debt to Equity Ratio Accounts Receivable Turnover Ratio Inventory Turnover Ratio ROE

Additional Data:

1. Cash Dividends of $10,000 were declared and paid.
2. Net Income for 2023 was $75,000.
3. Depreciation expense of $25,000
4. Long-term investments had a value of $ 45,000 and were sold for cash for a gainof $10,000. Additional long-term investments of $35,000 were purchased for cash.
5. Principal payment of $47,000 on long term debt
6. Shares sold for $50,000 cash.
7. Equipment with a cost of $25,000 and accumulated depreciation of $23,000 was sold for $14,000 cash. New Equipment was purchased for $35,000 cash.

Exhibit 1 UofU he Statement of Financial Position May31,2023 2023 Assets Cash Accourts Receivable hwentory Prepaid Rent Long-Term Assets Equipment Accumluated Depreciation mestments Long Term Total Assets Current Liabilities Accounts Payable Wages Payable hterest Payable ncome Tax Payable Long-term Liabilites Notes Payable Total Liabilites Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilites and Shareholders' Equity $137,000 102,000 45,000 5,000 289.000 275,000 110,000$165.000 45.000 $499.000 \$ 65,000 15,000 8,500 7.500$96.000 $224,000128,000 100.000 175.000 $275.000 $499.000 2022 2021 \$ 77500 78.000 68,500 27.500 28,000 240,000 90.000$150,000 $391.000 $37,5008,5005,5004,500$56,000 $231,000175,000 $391.000 3 I Page Exhibit 2 Uofunc. Statement of Earnings May 31, 2023 2023 Revenue Cost of Goods Sold Gross Margin Expenses: Other Expenses Net hcome 2022 2021 $950,000600,000$350,000 $825,000575,000$250,000 $488,000 $275.000 $75,000 $205.400 $44,600 $43.000 4P a ge Exhibit 1 UofU he Statement of Financial Position May31,2023 2023 Assets Cash Accourts Receivable hwentory Prepaid Rent Long-Term Assets Equipment Accumluated Depreciation mestments Long Term Total Assets Current Liabilities Accounts Payable Wages Payable hterest Payable ncome Tax Payable Long-term Liabilites Notes Payable Total Liabilites Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilites and Shareholders' Equity $137,000 102,000 45,000 5,000 289.000 275,000 110,000$165.000 45.000 $499.000 \$ 65,000 15,000 8,500 7.500$96.000 $224,000128,000 100.000 175.000 $275.000 $499.000 2022 2021 \$ 77500 78.000 68,500 27.500 28,000 240,000 90.000$150,000 $391.000 $37,5008,5005,5004,500$56,000 $231,000175,000 $391.000 3 I Page Exhibit 2 Uofunc. Statement of Earnings May 31, 2023 2023 Revenue Cost of Goods Sold Gross Margin Expenses: Other Expenses Net hcome 2022 2021 $950,000600,000$350,000 $825,000575,000$250,000 $488,000 $275.000 $75,000 $205.400 $44,600 $43.000 4P a ge