The Ammar Computer Inc. was founded 15 years ago by Ammar Tahleel a computer programmer. The small initial investment to start the company was made by Ammar Computer Inc.and his friends. Over the years, this same group has supplied the limited additional investment needed by the company in the form of both equity and short and long-term debt. Recently the company has developed an Electronic Device (ED). The ED uses sophisticated artificial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to preset user guidelines. The ED even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond what is currently on the market. In order to introduce the ED, the company requires significant external investment.Ammar Computer Inc.has made the decision to seek this external financing in the form of new equity investments and bank loans. Naturally, new investors and the banks will require a detailed financial analysis. Here is the balance sheet and income statement for the two most recent years:

Ammar Compute. Inc.BALANCE SHEET as at 31st December, 2019 (RM in thousands) Assets 2019 2018 Liabilities and Owner Equity2019 2018 Current assets (CA):Current Liabilities (CL):Cash and equivalents 290 251Accounts receivable 459 428 Accounts Payable262 245 Inventories 411 425 Notes Payable 71 66 Others 59 50 Accrued Expenses158 257 Total CA: 1219 1154 Total current Liabilities: 491 568Fixed assets:Long term Liabilities:Property plant &equipment 2631 2038 Deferred Taxes 212 103 Less; Accum. depreciation 859 700 Long term Debt 756 736 Total Property & equipment 1772 1338 Total Long Liabilities 968 839Intangible assets 508 454 Owner's EquityPreferred Stock13 13 Total Fixed Assets 2280 1792 Common Stock 81 80Capital Surplus 509 499Accumulated Retain Earnings 1558 10282161 1620Less; treasurystock 121 81Total Owner's Equity2040 1539Total Assets3499 2946 Total Liabilities and Owner's Equity3499 2946Ammar Compute Inc. has also provided the following information:During the year the company raised RM118,000 in new long-term debt and retired RM 98,000 in long-term debt. The company also sold RM11,000 of new stock and repurchased RM 40,000 of stock, the company purchased RM 786,000 in fixed assets and sold RM 139,000 of fixed assets.

Ammar Computer Inc. Income Statement for the year ended 31st December, 2019 (RM in thousands)Sales5000Cost of goods sold3000 Selling, General and Administrative expenses543 Depreciations170 Operating Income1287 Other Income48 EBIT1335 Interest Expenses95 Pretax Income1240 TaxesCurrent 386Deferred109 495 Net Income745 Addition to retained earnings533 Dividends212Required:a. Prepare the financial statement of cash flows and the accounting statement of cash flows.(15 marks)b. Describe the strengths and weaknesses of Ammar Compute. Inc. cash flows. (5 marks)c. Compare which cash flow statement is more accurate in describing the cash flows of the company. (5 marks)b. In light of your previous answers, comment on Ammar Computer Inc.expansion plans. (10 marks)