Zhang Systems Inc. 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 Zhang Systems Inc. and its activities during 2023:1. Assume all accounts have normal balances.2. Cash dividends were declared and paid during the year.3. Plant assets were sold for cash equal to book value during the year.

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

Analysis Component:The net decrease in cash during 2023 for Zhang Systems Inc. was $75 million. Briefly explain what caused this change using the statement of cash flows prepared above.

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Zhang Systems Inc. Income Statement For Year Ended December 31, 2023 ($millions) Revenues: Sales Cost of goods sold Gross Profit Expenses: Other expenses Depreciation expense Total expenses Profit (Loss) Zhang Systems Inc. Post-Closing Trial Balance ($millions) December 31 2023 2022 Account Cash Receivables Merchandise inventory Property, plant, and equipment Accumulated depreciation Non-current investments Accounts payable Accrued liabilities Bonds payable Common shares Retained earnings $ 54 276 408 6,900 3,699 1,560 318 141 1,200 2,700 1,140 7,050 1,350 $ 129 372 261 8,976 4,125 309 405 117 600 2,100 2,700 26,700 19,500 7,200 8,400 (1,200)