The following information and financial statements excerpts pertain to Liquity, Inc. a- All short term investment ( securities available for sale) were purchase on 12/31/14 and sold during 2015 b- The compnay entered a lease agreement on 12/31/15 c- Fixed assets with net book value of $ 15 were sold during the year. d- The compnay repaid the current portion on long -term debt during the year. e- Dividend was declared and partially paid.

	2014	2015
Assets
Cash	54	45
Short term investments	95	0
Acconts receivables	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 stockowner's equity
Accounts payable	38	48
Wage 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
Revenu, 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 1. Prepage the statement of cash flows of the year 2015 using the direct method 2. Reconcile net income and net cash flows from operating activities for 2015		10