Preparation of a Statement of Cash Flows, Analysis) The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2020 appear below.

Madrasah Corporation

Balance Sheets

Assets

Dec. 31, 2020

Jan. 1, 2020

Inc./Dec.

Cash

$20,000

$13,000

$7,000 Inc.

Accounts receivable

106,000

88,000

18,000 Inc.

Equipment

39,000

22,000

17,000 Inc.

Less: Accumulated depreciationequipment

17,000

11,000

6,000 Inc.

Total

$148,000

$112,000

Liabilities and Stockholders' Equity

Accounts payable

$20,000

$15,000

5,000 Inc.

Common stock

100,000

80,000

20,000 Inc.

Retained earnings

28,000

17,000

11,000 Inc.

Total

$148,000

$112,000

Net income of $44,000 was reported, and dividends of $33,000 were paid in 2020. New equipment was purchased and none was sold.

Instructions

a. Prepare a statement of cash flows for the year 2020.

b. Compute the current ratio (current assets current liabilities) as of January 1, 2020, and December 31, 2020, and compute free cash flow for the year 2020.

c. In light of the analysis in (b), comment on Madrasahs liquidity and financial flexibility.

Please answer complete for thumbs up

thanks