Prepare and Iaterpret a Statement of Cash Flows - A comparative balance sheet for Phillips Company containing data for the last two years is as follows: The following additional information is available about the company's activities during this year: a. The company declared and paid a cash dividend this year, b. Bonds with a principal balance of $407,000 were repaid during this year. c. Equipment was sold during this year for 583,500 . The equipment had cost 5184,000 and had $72,400 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $164,000. These investments had cost $74,300 when purchased several years ago. e. The subsidiaries did not repay any outstanding loans during the year. f. Lomax did not repurchase any of its own stock during the year. The company reported net income this year as follows: Required: The following additional information is available about the company's activities during this year: a. The company deelared and paid a eash dividend this year. b. Bonds with a principal balanee of $407,000 were repaid during this year. c. Equipment was sold during this year for $83,500. The equipment had cost $184,000 and had $72,400 in accumulated depreciation on the date of sale, d. Long-term investments were sold during the year for $164.000. These investments had cost $74,300 when purchased several years ago. e. Tbe subsidiaries did not repay any outstanding loans during the year. f. Lomax did not repurchase any of its own stock during the year. The company reported net income this year as follows: Required: 1. Using the indireet method, prepare a statement of cash flows for this year, (List any deduction in cash outflows as negative amounts.) 2. What problems relating to the company's activities are revealed by the statement of cash flows that you have prepared