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The financial records of John Cooper showed the following information related to B/S accounts and I/S. Balance Sheet at End of Year 2019 2020 Debits

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The financial records of John Cooper showed the following information related to B/S accounts and I/S. Balance Sheet at End of Year 2019 2020 Debits Cash $ 2.000 $ 2.200 A/R 3,800 4,800 Inventory 10,400 10,000 Prepaid expenses 600 800 LT-investments 2.000 Buildings 18,000 24,000 Machinery 8.000 12,400 Patents 1.000 800 S45,800 $55,000 0 $ 2,400 1,800 600 $ 1.600 2,600 400 Credits A/P ST - N/P Accrued wages Acc. Depreciation LT - N/P C/S R/E 8,000 6.000 24,000 3.000 545,800 7,800 7,000 30.000 5.600 $55,000 Income Statement for the Year Revenues and gains $24.400 CGS (8,400) Salaries expense (6,000) Interest expense (1.600) Other expenses and losses (3,200) NI $ 5,200 Additional data for 2020: 1. Acquired machinery costing $3,000; paid 1/3 in cash and issued a 5-year, interest- bearing note for the balance. II. Acquired machinery costing $5,000 by issuing C/S. III. Made addition to building costing $6,000, paid cash. IV. Paid a $1,000 LT-note by issuing C/S. V. Sold investment for $2,400 cash. VI. Paid cash dividends. VII. Depreciation recorded on buildings and machinery, $1,600. VIII. Disposed for $1,400 old machinery that originally cost $3,600 and that was y depreciated. IX. Proceeds from the ST-N/P were used to purchase inventory. Required: a. Prepare a statement of cash flows using the INDIRECT method. b. Calculate FCF = NOPAT - Change in NOA where (1) Cash is included in NOA and (ii) Cash is excluded from NOA. It is always helpful to construct the table below: 2019 2020 OL NOA C. Calculate DD = net cash payments to shareholders, and CC = net cash payments to debtholders. d. Calculate the change in NWC, where NWC (net working capital) = CA-CL. e.Suppose short term N/P is operating, and that the proceeds from the ST-N/P were used to purchase inventory. Calculate the cash paid for purchases

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