Prepare Statement of Cash Flows

Data:

• Operating Activities:
  • Net Income: $50,000
  • Depreciation: $10,000
  • Increase in Accounts Receivable: $5,000

• Investing Activities:
  • Purchase of Equipment: $20,000

• Financing Activities:
  • Issuance of Stock: $30,000

Requirements:

1. Prepare the statement of cash flows for the year ended December 31, 2023.
2. Categorize cash flows into operating, investing, and financing activities.
3. Discuss the company’s cash position and liquidity.