Clear Strategy Corp., a strategic marketing consulting firm, began operations on January 1, 2022. Its post-closing trial balance at December 31, 2022 and 2023 is shown below along with some other information.

Other information regarding Clear Strategy Corp. and its activities during 2023:1. Assume all accounts have normal balances.2. Share dividends were declared and issued during the year.3. Equipment was sold for cash equal to its book value.

RequiredUsing the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2023.

Analysis Component:Clear Strategy Corp.’s comparative post-closing trial balance shows that Receivables, Prepaid Insurance, Accumulated Depreciation, Accounts Payable, Common Shares, and Retained Earnings increased during 2023, while Equipment, Salaries Payable, Income Tax Payable, and Notes Payable decreased during the same period. Explain what most likely caused the changes in these accounts.

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Clear Strategy Corp. Income Statement For Year Ended December 31, 2023 ($millions) Revenues: Consulting revenue Expenses: Salaries expense Other expenses Depreciation expense Total expenses Profit from operations Income tax expense Profit Clear Strategy Corp. Post-Closing Trial Balance ($millions) Account Cash Receivables Prepaid insurance Land Equipment Accumulated depreciation Accounts payable Salaries payable Income tax payable Notes payable Common shares Retained earnings December 31 2023 $ 485 500 60 1,240 535 360 155 20 85 175 800 1,225 2022 $75 350 20 1,240 745 85 70 45 250 4,700 1,600 400 1,655 200 125 8,750 6,700 2,050 350 1,700