THOMAS COMPANY Comparative Balance Sheet December 31, 2019 Dec. 31, 2019 Dec. 31, 2018 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Equipment Accumulated depreciation equipment Total assets $ 23,000 18,000 27,000 6,000 -0- 60,000 (18,000) $116.000 $10,000 14,000 18,000 9,000 18,000 32,000 (14,000) $87.000 Liabilities and Stockholders' Equity Accounts payable $ 17.000 Bonds payable 37,000 Common stock 40,000 Retained earnings 22,000 Total liabilities and stockholders' equity $116.000 $ 7,000 47,000 23,000 10,000 $87.000 Additional information: 1. Net income for the year ending December 31, 2019 was $24,000. 2. Long-term investments that had a cost of $18,000 were sold for $18,000. 3. There were no sales of equipment. Instructions 1. Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method on the template provided. 2. Explain two reasons a company can experience a net loss and still report an increase in cash in the same period. Hint: think about the different activities in a cash flow statement and the types of events included. You must explain how your example provides cash and can't use Accrual Accounting or Depreciation as your reasons. Cash flows from activities Adjustments to reconcile to net cash from activities Net cash _ _by___ activities Cash flows from activities Net cash activities Cash flows from activities Net cash by activities Net in cash Cash at of period Cash at of period Non-Cash Investing and Financing Activities