Shale Inc., which follows ASPE, shows the following information: Shale Inc Balance Sheet As at December 31 2019 2018 $ $ 38,500 9,250 12,000 6,000 Assets Cash Accounts Receivable Inventory FV-NI Investments Building Accumulated amortization - Building Equipment Accumulated amortization - Equipment Patent Accumulated amortization - Patent Total assets 13,000 5,500 9,000 3,000 29,750 (6,000) 20,000 (4,500) 8,750 (2,500) 76,000 40,000 (2,000) 8,750 (3,750) $ 108,750 $ $ 5,000 $ Liabilities and Shareholders' Equity Accounts payable Dividends payable Lease obligation Common shares Retained earnings Total 3,000 6,000 16,000 61,000 26,750 $ 108,750 50,000 17,000 76,000 $ . . Additional data for 2019: Equipment that cost $11,000 and was 40% amortized was sold for $2,500. Cash dividends paid were $6,000. No dividends were declared in 2019. On January 1, 2019, the building was sold for $37,000. Net income includes unrealized holding gains of $3,000 from FV-Ni investments. Cash of $15,000 was paid for new equipment. On December 31, 2019, Shale Inc. entered into a finance lease for equipment. The present value of annual lease payments is $16,000, which equals the equipment's fair value. Shale made the first monthly rental payment of $300 when due on January 2, 2020. . REQUIRED: 1. Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2019 2. Calculate the current ratio and debt ratio as at December 31, 2019 and 2018. Using your calculations and the statement of cash flow, comment on the company's liquidity and financial flexibility