XYZ Company's comparative balance sheet and income statement for the most recent year are shown below: XYZ Company Comparative Balance Sheet As of December 31 Ending Beginning Assets Balance Balance Cash 1,400,000 1,000,000 Accounts Receivable 2,100,000 1,500,000 Inventory 5,000,000 4,300,000 Prepaid Expenses 200,000 600,000 Plant and Equipment 19,000,000 14,000,000 Less: Accumulated Depreciation (6,500,000) (5,400,000) Long-term Investments 7,000,000 9,000,000 Total Assets 28,200,000 25,000,000 Liabilities and Stockholders' Equity Accounts Payable 2,600,000 2,500,000 Accrued Liabilities 1,000,000 1,200,000 Taxes Payable 4,900,000 4,900,000 Mortgage Payable 5,000,000 4,000,000 Common Stock 8,000,000 7,000,000 Retained Earnings 6,700,000 5,400,000 Total Liabilities and Stockholders' Equity 28,200,000 25,000,000 XYZ Company Income Statement For the year ending, December 31, 20xx Sales 23,000,000 Less: Cost of Goods Sold (12,000,000) Gross Margin 11,000,000 Less: Operating Expenses (7,000,000) Operating Income 4,000,000 Gain on Sale of Long-term Investments 500,000 Income Before Taxes 4,500,000 Less: Income Taxes (1,400,000) Net Income 3,100,000 Notes: Dividends of P18 Million were declared and paid during the year. The gain on sale of long-term investments was from the sale of investments for P25 Million in cash. These investments had an original cost of P20 Million. There were no retirements or disposals of plant or equipment during the year. Required: 1. Prepare a cash flow statement using the indirect method of computing cash flow from operations. 2. Conduct a cash flow analysis.