Help creating and anaylyzing a Statement of Cash Flow

You are given the following information for the

ABC Corporation

:

ABC Corporation

 

AR70,000

Balance Sheet (Partial)
Year 3	Year 4
Cash	$ Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	70,000	$9,640
85,000
Inventories	87,000	84,000
Accounts Payable	48,000	51,000

 

ABC Corporation

 

 

 

 

 

Income Statement
For the Year Ending December 31, Year 4
Sales	$560,000
Operating Expenses	$420,000
Depreciation Expense	46,000	466,000
Income Before Taxes	$94,000
Income Tax Expense	$37,600
Net Income	$56,400

Other Data:

• The ABC corporation sold an asset and recorded a loss on the sale of $8.700. The sale price was $220,000 and the asset was originally purchased for $360,000.
• Dividends paid in Year 4 were $22, 460.

Required:

1. Prepare a statement of cash flows for the year ending December 31, Year 4 using the indirect method.
2. What conclusions could you arrive at regarding the cash position of the firm?
3. What information was provided in the statement of cash flows that was not evident if just the balance sheet and the income statement were examined?