Solve the following. 1. Use the information provided to prepare the Cash Flow Statement using the Direct Method. Find out the following; 1. Net Cash (Outflow)/Inflow From Operating Activities. (5 points) 2. Net Cash (Outflow)/Inflow From Investing Activities. (5 points) 3. Net Cash (Outflow)/Inflow From Financing Activities. (5 points) 4. Net change in cash and cash equivalents (5 points) ABC's Company 's Balance sheet Comparative Balance Sheet as at December 31, 2018 Assets 2018 Fixed Assets Land Building Accumulated depreciation on buildings Equipment Accumulated depreciation on equipment 201,000 10,000 150,000 -40,000 101,000 - 20,000 2017 237,000 30,000 150,000 - 20,000 89,000 - 12,000 Current Assets Bank 134,200 44,000 26,000 60,000 4,200 56,200 22,000 28,000 Account Receivable Inventories (Stock on hand) Prepaid expenses 6,200 Total Assets ? ? Equity and Liabilities Shareholder's Equity Ordinary share 202,200 170,000 32,200 123,200 100,000 23,200 Retain income Non-current liabilities 100,000 100,000 140,000 140,000 Loan payable Current Liabilities 33,000 33,000 30,000 30,000 Accounts payable Total Equity and Liabilites ? ? Income Statement 31 December 2018 Revenue/Sales Cost of good sold Operating expenses Indirect expenses 800,000 475,000 220,000 8,000 2,000 95,000 38,000 57,000 Loss on sales of equipment Income from operation Income tax expenses Net income Additional information: a. Operating expenses include depreciation expense of Php 34,000 and amortization of pre-paid expenses of Php 2,000. b. Land was sold at its nook value of cash c. Cash dividend of Php 48,000 was paid in 2018. d. Interest expenses of Php 8,000 was paid in cash. e. Equipment with a cost of Php 36,000 was purchased for cash. Equipment with a cost of Php 24,000 and a book value of Php 18,000 was sold for Php 16,000 for cash f. Loans were redeemed at their book value for cash. g. Ordinary shares were issued for cash. 2. In reference to the problem number 1, compute the ABC's Company's Balance sheet using horizontal analysis. (10 points) 3. In reference to the problem number 1, compute the ABC's Company's Balance sheet using vertical analysis. (10 points) - End