prepare the statement of cash flows for Anthony-court & son using the indirect method.

The financial statements of ANTHONY-COURT& SON appear below: ANTHONY-COURT & SON Comparative Balance Sheet December 31 2020 2019 Assets Cash Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total $ 36,000 25,000 32,000 50,000 _(21.000) $122.000 $ 23,000 34,000 15,000 78,000 _(24.000 $126.000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 18,000 9,000 8,000 28,000 59.000 $122.000 $ 23,000 8,000 33,000 24,000 38.000 $126.000 ANTHONY-COURT & SON Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses (Includes $8,000 depreciation) Income from operations Interest expense Income before income taxes Income tax expense Net income $400,000 270.000 130,000 ___45.000 85,000 5.000 80,000 24,000 $ 56.000 The following additional data were provided: 1. Dividends declared and paid were $35,000. 2. During the year, equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had accumulated depreciation of $11,000 at the time of sale. 3 All depreciation expense , $8,000, is in the operating expenses. PART 1: 100 POINTS Prepare a statement of cash flows for Anthony-Court & Son using the indirect method. Present computation when c PART 1: 100 POINTS Prepare a statement of cash flows for Anthony-Court & Son using the indirect method. Present computation when deemed necessary. NOTE: Proper format and syntax (S's) are expected and will be evaluated. A 3 COLUMN TABLE WILL FACILITATE NEATNESS PART 2: 50 POINTS Write a memo to Jymyne Waters (your summer internship supervisor) that explains what the statement of cash flow you just prepared says about the company. At minimum, discuss, but don't limit yourself to the following items in your memo: 1. Which section of the statement do you believe is the most important? Why? 2. Just looking at the statement for this year (without comparing to previous years), do you see any area(s) on which the company should focus? Explain clearly 3. What do you recommend the company do to improve its cash flow position? FORMAT, GRAMMAR, AND CONTENT WILL BE EVALUATED