Capaz Company completed its statement of earnings and statement of financial position for 2015 and provided the following information:

In addition, Capaz bought a small service machine for $ 5,000.
Required:
1. Present the operating activities section of the statement of cash flows for Capaz Company using the indirect method.
2. What were the major reasons that Capaz was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?

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Statement of Earnings for 2015 $53,000 Servioe revenue Expenses Salaries $41,000 7,000 200 9,700 Depreciaton Amortization of copyrights Other expenses Net loss Partial Statement of Financial Position Trade receivables Salaries payable Other accrued Babilities 57.900 $(4,900 2014 $15,000 1,000 5,100 $ 8,000 15,000 1,000