1) Using the information provided prepare a cash flow statement (direct method) and the reconciliation of net income to cash flow from operations for the year ended December 31 20x4. (40 Points) 1,250 950 300 92 55 Leif Corporation Income Statement For the Year Ended December 31 20X4 (S's in millions) Sales Cost of goods sold Gross profit Operating expenses: Selling and general administrative expense Depreciation expense Operating income Interest expense Interest income Profit before tax Income tax expense Net profit Leif Corporation Balance sheet As of December 31 20X4 and 20x3 (S's in millions) 147 153 10 (2) 8 145 53 92 20X4 20X3 212 175 300 150 238 750 350 485 (248) 1,725 225 638 (250) 1,300 Assets Cash Accounts receivable Inventory Prepaid expenses (associated with selling general and admin. exp.) Plant assets Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Taxes payable Long Term Debt Common Stock Retained earnings Total liabilities and stockholders' equity Additional information: 132 125 555 750 163 1,725 125 75 250 750 100 1,300 During 2074 Leif paid $263 in cash for new plant assets and financed an additional $55 in plant asset acquisitions, borrowing the full amount by issuing a note payable. Therefore capital expenditures are $318. Leif sold plant assets for their book value in a cash transaction. Leif did not pay any debt during the current year. All dividends declared were cash dividends