ABC Company’s current financial information Problem

Current company cash flow
a. You need to complete a cash flow statement for the company using the direct method.
b. Once you’ve completed the cash flow statement, answer the following questions:
i. What does this statement of cash flow tell you about the sources and uses of the company funds?
ii. Is there anything ABC Company can do to improve the cash flow?
iii. Can this project be financed with current cash flow from the company? Why or why not?
iv. If the company needs additional financing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company obtain the additional financing, equity or corporate debt, and why?
ABC Company’s current financial information (before/without expansion) 
Dec. 31,20X2 Dec. 31,20X1 
Cash $50,000 $70,000 
Accounts receivable (net) $120,000 $180,000 
Merchandise inventory $350,000 $280,000 
Property plant, & equipment $400,000 $300,000 
Less: Accumulated depreciation $(170,000) $(100,000)
Total assets $750,000 $730,000 
Accounts payable $250,000 $210,000 
Income taxes payable $40,000 $10,000 
Common stock $240,000 $240,000 
Retained earnings $220,000 $270,000 
Total liabilities & stock, equity $750,000 $730,000 
The firm’s accrual-basis income statement revealed the following data: 
Sales $1,200,000 
Cost of goods sold $800,000 
selling and administrative expenses $250,000 
Depreciation expense $70,000 
Income taxes $30,000 
Dividends declared and paid during 19X2 $100,000 
ABC purchased $100,000 of equipment for cash on August 14. 
(There was no interest expense.)