The following information and financial statements excerpts pertain to Liquidity Inc.
a. All short term investments (securities available for sale) were purchased on 12/31/14 and sold during 2015.
b. The company entered a lease agreement on 12/31/15.
c. Fixed assets with a net book value of $15 were sold during the year.
d. The company repaid the current portion of long-term debt during the year.
e. Dividend was declared and partially paid.
	2014	2015
Assets
Cash	54	45
Short term investments	95	0
Accounts receivable	45	85
Inventory	52	75
Prepaid general expenses	11	15
Fixed assets under capital lease, net	0	50
Fixed assets, net	165	228
	422	498
Liabilities and stockowners equity
Accounts payable	38	48
Wages payable	12	6
Tax payable	3	5
Dividend payable	0	4
Current portion of long term debt	10	12
Obligations under capital leases	0	50
Long term debt	183	180
Common stock	150	163
Retained earnings	26	30
	422	498
	2014	2015
Revenues, net		426
Cost of goods sold		310
Gross margin		116
General expenses	30
Wages expenses	42
Depreciation expense	24
Interest expense	11
Loss on sale of fixed assets	3
Gain on sale of securities available for sale	12
Tax expenses	8
		106
Net income		10
1. Prepare the statement of cash flows for the year 2015 using the direct method.
2. Reconcile net income and net cash flows from operating activities for the year 2015.