Swasey Company provided the following partial comparative balance sheets and the income statement for $20$X$2.$Swasey CompanyComparative Balance SheetsAt December $31,20$X$1$ and $20$X$22$ Current assets:$20$X$120$X$23$ Cash$$234,500\mathrm{.}00$$$672,000\mathrm{.}00$Accounts receivable$$747,000\mathrm{.}00$$$585,000\mathrm{.}005$ Inventories$296,000\mathrm{.}00318,000\mathrm{.}00$Long$-$term assets:$7$ Plant and equipment$2,202,000\mathrm{.}00$ g$2,140,000\mathrm{.}008$ Accumulated depreciation$(1,202,000\mathrm{.}00)(1,270,000$:$00)9$ Land$991,000\mathrm{.}001,437,500\mathrm{.}0010$ Total assets$$3,268,500\mathrm{.}00$$$3,882,500\mathrm{.}0011$ Current liabilities:$12$ Wages payable$$699,000\mathrm{.}00$$$514,000\mathrm{.}0013$ Long$-$term liabilities:$14$ Bonds payable$0\mathrm{.}00384,500\mathrm{.}0015$Mortgage payable:$96,500\mathrm{.}000\mathrm{.}00$Stockholders equity:$18$ Common stock$380,000\mathrm{.}00380,000\mathrm{.}0019$ Paid$-$in capital in excess of par$276,000\mathrm{.}00276,000\mathrm{.}00\mathrm{.}20$ Retained earnings$1,817,000\mathrm{.}002,328,000\mathrm{.}0021$ Total stockholders equity$2,473,000\mathrm{.}00\mathrm{.}2,984,000\mathrm{.}00$Swasey CompanyIncome StatementFor the Year Ended December $31,20$X$21$ Revenues$$3,010,000\mathrm{.}002$ Gain on sale of equipmen$104,000\mathrm{.}003$ Cost of goods sold$(1,918,000\mathrm{.}00)*34$ Depreciation expense$(276,000\mathrm{.}00)5.$ Interest expense$(12,500\mathrm{.}00)$Interest expense$6$Net income$(12,500\mathrm{.}00)$$$907,500\mathrm{.}00$During the year, Swasey Company sold equipment with a book value of $$279,000$ for $$383,000($original purchase cost of $$487,000).$New equipment was purchased.Required:$1.$ Prepare a statement of cash flows for Swasey for $20$X$2\mathrm{.}2.$ Reflect on the relationship between the statement of cash flows and the change in cash.