Question Comparative information for the VELO COMPANY is shown Income statement 2021 Sales Less: Cost of goods sold Gross profit Less Operating expenses Net Income $1,063,000 $440,000 $623,000 $530,000 $ 93000 Balance Sheet 2021 2020 ASSETS Cash Accounts receivable Inventory Equipment $ 63,000 85,000 170.000 270,000 $22,000 76,000 189,000 200,000 Total accumulated depreciation (66,000) $(32,000) TOTAL $597,000 $555,000 LIABILITIES AND STOCK HOLDER'S EQUITY Accounts payable Bonds payable 39,000 150,000 47,000 200,000 Common stock ($1 par) Retained earnings 216,000 192,000 174,000 134,000 $597,000 $555,000 Total Required a. Prepare a statement of cashflows for the year ended December 31, 20 (Hint divide activities into operating, investing, and financing). b. Comment on the company's financial position