the following 22 multiple-choice questions based on the descriptions provided in the questions and the accompanying table. Given the financial information for the A.E. Neuman Corporation, A) Prepare a Statement of Cash Flows for the year ended December 31, 20X5. B) What is the dividend payout ratio? C) If we increased the dividend payout ratio to 100%, what would happen to retained earnings? 1) A.E Neuman Corporation Balance Sheet Assets 20X4 20X5 Cash $45,000 $130,000 Marketable Securities 175,000 160,000 Accounts Receivable 240,000 220,000 Inventories 230,000 275,000 Investments 70,000 55,000 Total current assets $760,000 $760,000 Plant and Equipment 1,300,000 1,550,000 Less Accumulated Amortization 450,000 600,000 Net plant and Equipment $850,000 $950,000 Total Assets 1,610,000 1,790,000 LIABILITIES AND SHAREHOLDERS EQUITY Accounts payable $110,000 $85,000 Notes payable 65,000 10,000 Accrued Expenses 30,000 5,000 Income Taxes Payable 5,000 10,000 Bonds Payable (20X6) 800,000 900,000 Common Stock (100,000 shares) 200,000 200,000 Retained Earnings 400,000 580,000 Total Liabilities and Shareholders Equity $1,610,000 $1,790,000 A.E. Neuman Corporation Income Statement For the Year Ended December 31, 20X5 Sales $ 5,500,000 Less: Cost of Goods Sold 4,200,000 Gross Profit 1,300,000 Less: Selling, General & Administrative Expenses 260,000 Operating profit 1,040,000 Less: Amortization Expense 150,000 Earnings Before Interest and Taxes 890,000 Less: Interest Expense 90,000 Earnings Before Taxes 800,000 Less: Taxes (40%) 320,000 Net Income $ 480,000 Your Answer For question 4(Total Marks 27): Please answer the following 22 multiple-choice questions A) Operating Activities Marks Net Income (earnings after taxes) 1 Add items not requiring on outlay of cash: Amortization 1 Cash flow from operations 1 Change in non-cash working capital: Decrease in accounts receivable 1 Increase in inventories 1 Decrease in accounts payable 1 Decrease in notes payable 1 Decrease in accrued expenses 1 Increase in income taxes payable 1 Net Change in non-cash working capital 1 Cash provided by operating activities 1 Investing Activities Decrease in investments 1 Increase in plant & equipment 1 Cash used in investing activities 1 Financing Activities Increase in bonds payable 1 Dividends paid 1 Cash used in financing activities 1 Net increase in cash and equivalents during year 1 Cash and equivalents, beginning of year 1 Cash and equivalents, at year end 1 B)(4Marks) Dividend payout ratio = Dividends paid, 20X5 Net income, 20X5 = % = $ / $ = C) (3Marks)