SP5-2. Cash Flow Statement GDM Company has the following balance sheet (in millions) on December 31, 1997, shown with comparative numbers for 1996 1997 1996 Assets Current assets: Cash 25 35 Accounts receivable 30 50 35 Inventory Noncurrent assets: Building and equipment (net of accumulated depreciation) Land 35 100 80 30 40 30 Investments 80 295 275 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Unearned revenue 35 10 25 35 Long term liabilities: Notes payable Stockholders' equity: Common stock 50 80 50 40 50 Preferred stock 20 Retained earnings 60 275 115 295 The company had a net loss in 1997 of $45 million, but it distributed a dividend of $10 million. Capital was raised by issuing notes for $40 million and preferred stock for $20 million. Payment of $10 million was made to retire long term debt during the period. Proceeds from the capital issues were used in part to acquire a building for $35 million. There was no sale of land or building during the year. Depreciation of $15 million was recorded. Investments were sold at a gain of $5 million. Required 1. Prepare a Statement of Cash Flows, using the indirect method. 2. Briefly comment on the trends revealed by the statement you prepared in