A comparative balance sheet for Orozco Corporation is presented below.

Additional information:1. Net income for 2012 was $105,000.2. Cash dividends of $40,000 were declared and paid.3. Bonds payable amounting to $50,000 were retired through issuance of common stock.Instructions(a) Prepare a statement of cash flows for 2012 for Orozco Corporation.(b) Determine Orozco Corporation's current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Comment on its liquidity and financialflexibility.

December 31 2012 2011 Assets $ 63,000 $ 22,000 66,000 189,000 110,000 200,000 (42,000) Cash Accounts receivable 82,000 180,000 71,000 270,000 (69,000) Inventory Land Equipment Accumulated depreciation-equipment Total $597,000 $545,000 Liabilities and Stockholders' Equity $ 34,000 $ 47,000 200,000 Accounts payable Bonds payable Common stock ($1 par) Retained earnings 150,000 214,000 199,000 164,000 134.000 Total $597.000 $545,000