Principles of Finance (FIN 3213) Homework #4, 10 points due 2:00 p.m., Tuesday 9/7/2021 Balance Sheets Cash Marketable securities Accounts receivable Inventory Current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets 2020 1450 1800 2000 2950 8200 29500 14700 14800 23000 2019 1000 1200 1400 2800 6400 28500 13100 15400 21800 Accounts payable 1300 Notes payable 3100 Accruals 200 Current liabilities 4600 Long-term debt (bonds) 4000 Preferred stock 1000 Common stock 5000 Paid-in capital 5000 Retained earnings 3400 Total liab & equity 23000 1500 2200 300 4000 4000 1000 5000 5000 2800 21800 Income Statements Sales Cost of goods sold Operating expenses Depreciation expense EBIT Interest expense EBT Taxes (40%) NI 2020 98000 50000 43700 1600 2700 367 2333 933 1400 Cash dividends paid 800 Based on the comparative balance sheets and comparative income 1. statements, construct a statement of cash flows. Statement of Cash Flows for 2020 Operating Activities Net Income Adjustments: Non-cash adjustments Accumulated depreciation Changes in working capital Change in accounts receivable Change in inventories Change in accounts payable Change in accruals Net cash provided by Operating Activities Long-Term Investment Activities Cash used to acquire fixed assets Financing Activities Change in marketable securities Change in notes payable Change in long-term debt Change in preferred stock Change in common stock Change in paid-in capital Payment of cash dividends Net cash provided by Financing Activities Summary Net change in cash Cash at beginning of year Cash at end of year 2. Refer to the Statement of Cash Flows above. Was "Change in Notes Payable" a source or use of funds? How do you interpret this source or use? In other words, what action did the company take to cause this source or use