Use the income statement of Grand Consulting Ltd. plus these additional data during fiscal year 2020: (Click the icon to view the Income Statement.) Required i (Click the icon to view the additional data.) 1. Prepare Grand Consulting Ltd.'s cash flow statement for the year ended September 30, 2020, using the indirect method. 2. Evaluate Grand Consulting Ltd.'s cash flows for the year. In your evaluation, mention all three categories of cash flows, and give the reason for your evaluation. Requirement 1. Prepare Grand Consulting Ltd.'s cash flow statement for the year ended September 30, 2020, using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Grand Consulting Ltd. Cash Flow Statement For the Year Ended September 30, 2020 Cash flows from operating activities i Data Table Net income Add (subtract) items that affect net income and cash flow differently: Amortization expense Decrease in accounts receivable Increase in office supplies Increase in accounts payable Decrease in accrued liabilities Net cash inflow from operating activities Cash flows from investing activities Acquisition of computer equipment Cash receipt from sale of land Net cash outflow from investing activities Cash flows from financing activities Grand Consulting Ltd. Income Statement For the Year Ended September 30, 2020 Revenues Consulting revenue $ 558,000 Expenses Salaries expense $ 296,000 Amortization expense 64,000 Rent expense 14,000 Office supplies expense 22,000 Insurance expense 6,500 Interest expense 4,500 36,000 443,000 Income tax expense $ 115,000 Net income Use the income statement of Grand Consulting Ltd. plus these additional data during fiscal year 2 (Click the icon to view the Income Statement.) i (Click the icon to view the additi Required 1. Prepare Grand Consulting Ltd.'s cash flow statement for the year ended September 30, 2020 2. Evaluate Grand Consulting Ltd.'s cash flows for the year. In your evaluation, mention all three Net cash inflow from operating activities Cash flows from investing activities Acquisition of computer equipment Cash receipt from sale of land Net cash outflow from investing activities Cash flows from financing activities Cash receipt from issuance of common shares Payment of long-term note payable Dividends paid Net cash outflow from financing activities Net increase in cash Cash balance at beginning of 2020 Cash balance at end of 2020 Additional data: a. Acquisition of computer equipment was $242,000. Of this amount, $208,000 was paid in cash and $34,000 by signing a long-term note payable. Grand Consulting Ltd. sold no computer equipment during fiscal year 2020. b. Cash received from sale of land, $22,000. c. Cash receipts from issuance of common shares, $96,000. d. Payment of long-term note payable, $54,000. e. Payment of dividends, $144,000. f. Change in cash balance, $?. g. From the comparative balance sheet at September 30: Grand Consulting Ltd. Balance Sheet (partial) September 30, 2020 and 2019 Current assets Cash 2020 2019 $ 50,000 $46,000 34,000 148,000 34,000 29,000 24,000 24,000 Non-cash investing and financing activities: Acquisition of equipment by issuing note payable Requirement 2. Evaluate Grand Consulting Ltd.'s cash flows for the year. In your evaluation, mer The cash flow from financing activities is very satisfactory and it provided most of the fund by way of notes and common shares, which is found in the Accounts receivable Office supplies Prepaid expenses Current liabilities Accounts payable Accrued liabilities section of the cash flow statement. $ 80,000 $68,000 44,000 52,000 Print Done Requirement 2. Evaluate Grand Consulting Ltd.'s cash flows for the year. In your evaluation, mention all three categories of cash flows, and give the reason for your evaluation. The cash flow from financing activities is very satisfactory and it provided most of the funds to acquire the computer equipment, which is found under company is fairly strong and has little problem in acquiring statement. by way of notes and common shares, which is found in the . The section of the cash flow