Question 2_(15 marks) (Record your answers directly below the question. Required: (1) Prepare a cash flow statement in good form based on the following information, and (2) Comment using point form and very briefly on the results. Be brief, what do you think about the cash situation and changes to cash? (3) Answer very briefly the following question: "Why would a 'gain on sale of equipment' be a cash deduction, NOT an addition, to the adjustments to cash in the operating section of the cash flow statement?" Beg of year End of year Assets: Cash $100 $400 Accounts receivable 60 590 Inventory 90 50 Equipment 470 580 Less: Acc dep'n-equip _(70) (80) Total assets: $650 $1,540 Liabilities and Equity: Accounts payable S40 $55 Other current liabilities 70 40 Long-term loan payable 150 200 Common shares 200 720 Retained earnings 190 525 Total liab and o/equity $650 $1.540 Other information: 1. Net income in the year: 5365 2. Dividends issued in the year: $30 3. Depreciation expense $20 4. No equipment was sold or disposed in the period. 5. The changes in balance sheet accounts offer other relevant information