Statement of Cash Flows Analysis

You are given the following information for Barko Industries: See attached

Other Data:

• Barko Industries sold an asset and recorded a loss on the sale of $8.700. The sale price was $220,000 and the asset was originally purchased for $360,000.
• Dividends paid in Year 4 were $22,460.

Required:

1. Make a statement of cash flows for the year ending December 31, Year 4 using the indirect method.
2. What conclusions could you arrive at regarding the cash position of the firm?

What information was provided in the statement of cash flows that was not evident if just the balance sheet and the income statement were examined? How might that information affect management decisions?