1. Salza Technology Corporation increased its sales from $375,000 in 2018 to $450,000 in 2019 as shown in the firms income statements presented below. LeAnn Sands, chief executive officer and founder of the firm, expressed concern that the cash account and the firms marketable securities declined substantially between 2018 and 2019. Salzas complete balance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology.
   1. Prepare a statement of cash flows for 2019 for Salza Technology Corporation.
   2. Provide a brief description of what happened in terms of cash flows (both inflows and outflows) for Salza between 2018 and 2019.

SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENTS FOR YEAR ENDED DECEMBER 31 (IN S THOUSANDS) 2018 2019 $375 - 225 150 - 48 -25 Net Sales Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation Less: Interest Income before taxes Less: Income taxes Net income Cash dividends $450 -270 180 -46 -30 -4 100 -30 $70 S20 75 -20 S55 S17 BALANCE SHEETS AT END OF DECEMBER 31 (IN S THOUSANDS) 2018 2019 S39 50 151 $16 80 204 300 290 -125 240 200 -95 Cash Accounts receivable Inventories Total current assets Gross fixed assets Less accumulated depreciation Net fixed assets Total assets Accounts payable Bank loan Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 105 S345 S30 20 10 80 15 85 185 S345 105 S485 S45 27 23 95 15 120 235 S485