These are the financial statements for Simpsons LtdBalance Sheetas at $31$ December $2022$ Assets$20222021$Cash$29,00015,000$Accounts receivable$28,00014,000$Inventory$25,00035,000$Property, plant and equipment$60,00078,000$Accumulated depreciation$(20,000)(24,000)$Total$122,000118,000$Liabilities and equity Accounts payable$26,00025,000$Income tax payable $5,0008,000$Debentures payable$27,00033,000$Share capital$18,00014,000$Retained earnings$46,00038,000$Total$122,000118,000$ Statement of profit or lossfor the year ended $31$ December $2022$ Sales$250,000$Cost of sales$210,000$Gross profit $40,000$Selling expenses $18,000$Administrative expenses $6,000$Interest expense $2,000$Profit before income tax $14,000$Income tax expense $4,000$Profit $10,000$ The following additional data were provided: $1.$ The entity paid a cash dividend during the year$\mathrm{.}2.$ During the year equipment was sold for cash. This equipment cost $$18,000$ originally and had a carrying amount of $$8,500$ at the time of sale$\mathrm{.}3.$ All depreciation expense is in the selling expense category$\mathrm{.}4.$ All operating expenses except for depreciation were paid in cash. Required:a$)$ Prepare a statement of cash flows using the direct methodb$)$ Comment on the results of the cash flow statement.