statement of cash flow in detail please

Upon graduation, a young business school student, Mandy Arlington, decided to follow her dream of becoming a clothing designer. After much thought, she decided to design her own line of beachwear to be sold in beach towns across the province of Ontario in Canada. Arlington would design the clothing and have it produced by a local manufacturer. After researching suppliers, manufacturers, vendors and office locations, Arlington's clothing line, The 10 Beach Hut, was launched as a sole proprietorship in January of 2011, in time for the upcoming spring season. Operations started slowly and losses were incurred in the first few years; however, by 2014, sales resulted in a profit as demand grew for The 10 Beach Hut wear. Selected financial statements for 2013 and 2014 are shown in Exhibits 1, 2 and 3. REQUIRED Prepare and analyse a statement of cash flows for The 10 Beach Hut for the year ending December 31, 2014. EXHIBIT 1: STATEMENT OF EARNINGS For the year ending December 31, 2014 Net sales Cost of goods sold Gross profit $ 296,475 221.109 75,366 Operating expenses Selling and administration Amortization Interest $ 48,384 6,106 14,115 68,605 Net income $ 6.761 Additional note regarding 2014 operations: 1. The owner made an additional $5,580 capital investment in October 2014 (see Exhibit 2). EXHIBIT 2: STATEMENT OF CAPITAL For the year ending December 31, 2014 For use only in the course Business for Engineers at Richard Ivey School of Business from Sep 01, 2020 to Apr 30. 2021 Use outside these parameters is a copyright violation. Beginning capital (2013) Net income Capital investment $ 45,627 6,761 5,580 Less: drawings 57,968 3,283 Ending capital (2014) $ 54.685 Od Sprung ano 111 Page 3 9B06B003 EXHIBIT 3: BALANCE SHEETS For the years onding December 31, 2013 and 2014 2014 2013 ASSETS Current assets: Cash Accounts receivable Inventory Prepaids Total current assets $ 3.939 73.856 65,322 1,313 $144.430 $ 1.970 60,726 58.100 1.641 $ 122,437 16.084 16.084 $ 79,764 20,548 59.216 $ 72,543 14.442 58.101 at Richard Ivey School of Business from Sep 01, 2020 10 Apr 2021 75.300 Fixed assets": Land Building & fixtures Less: accum. amortization Total net fixed assets Total assets LIABILITIES & OWNER'S EQUITY Current liabilities: Bank Indebtedness Accounts payable Total current liabilities 74.185 $219.730 $196.622 $ 32,760 40.375 73,135 $ 23,962 31.840 55,802 91,910 91.910 95,193 95,193 Long-term debt Total liabilities Owner's equity: Owner, capital Total liabilities and owner's equity 54.685 45.627 $219.730 $196.622