Q2: Assume that you are the chief financial officer of a company that provides accounting services to small businesses. You are called upon by the board of directors to explain why your cash balance did not increase much from the beginning of 2018 until the end of 2018, since the company produced a reasonably strong profit for the year, with a net income of $88,000. Further assume that there were no investing or financing transactions, and no depreciation expense for 2018. What is your response? Provide the calculations to back up your answer. (marks: 8) Dec 31. 2018 $195,700 Cash Accounts receivable Prepaid costs Accounts payable 216,000 6,000 80,500 Dec 31, 2017 $146,000 198,500 7,200 102,500 Operating Activities: Net Income Increase in Accounts Receivable Decrease in Prepaid Costs Decrease in Accounts Payable Net cash flow from operating activities $ 88,000 (17,500) 1,200 (22,000) 49,700