Question 2 (30 points) Shown on the next page are the (simplified) balance sheets for fiscal years 2019 and 2020 of McDonald's Corporation, the world's largest (fast food) restaurant chain by revenue. The balance sheets are also available in electronic spreadsheet format on Canvas. The company's 2020 financial report further includes the following information (in $ million). The company sold some of its restaurants (property and equipment) for cash at a gain of $28 during the year. The restaurants original purchase cost amounted to $364 and its associated depreciation at the point of sale amounted to $316. That is, the carrying (net) value for this property and equipment was $48. The company acquired all new property and equipment in cash. The company gave stock-based compensation of $92 to its employees. Stock-based compensation is a non-cash expense and is credited to (i.e., increases) contributed capital. The company issued additional shares for cash during 2020. Treasury stock is a contra account to contributed capital. It records reductions to contributed capital due to stock repurchases. All repurchases during 2020 are made in cash. The company's income statement shows a net income of $4,731. All investments were purchased for cash at their balance sheet value. No investments were sold during the year. The portion of long-term debt due to be paid to creditors within the next fiscal year is reported as the current portion of the long-term debt under current liabilities. The current portion as of 2019 due in 2020 is repaid at its book value in cash during the period. No further long-term debt was retired. All transactions in items involving taxes and 'other' assets and liabilities are operating activities. Required: a. Prepare a cash flow statement for the year ended December 31, 2020, using the indirect method. b. Briefly explain why the company's book value of equity is negative. Does this mean the company is destroying shareholder value (i.e., the wealth of shareholders)? How are the cash flow patterns observed in the three sections of the cash flow statement linked to the negative book value of equity?