A comparative balance sheet for BETA Company containing data in for the last recent years is as follows:

Income Statement for the current year 20X1:

- Prepare the cash flow statement for Beta Company using the indirect method.

- Analyze the cash flow statement for Beta Company.

- Discuss arguments against preparing the cash flow statement using the indirect method.

Comparative Balance Sheet Liabilities & Stockholders' 20X1 20X0 Equity Stockholders' equity: 20X1 20X0 116,529 86,975 Common stock 16,550 5,707 Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets (27,231) (29) 3,802 89.298 16,521 9,509 1.470 90,768 (18.843) Retained eamings Total stockholders' 68,132 equity Long term 1,665 liabilities: 69,797 Long-term debt Total long-term liabilities Current liabilities: 1,583 1,000 42,021 1,000 42,021 Current assets: Cash and cash equivalents Accounts receivables 1.159 7.045 5,374 Accounts payable 13,428 8,179 6.606 4,014 Notes Payable 13,204 12,425 Inventories Prepayment accounts 765 600 1,545 Total current assets 15,575 61,590 8,018 929 Short-term debt Current portion of 11,900 long-term debt Total current liabilities Total liabilities Total liabilities & 81,697 stockholders' equity 88,822 89,122 30,167 72,188 Total assets 106,343 106,343 81,697 74,988 Income Statement Sales Cost of goods Gross margin Selling expenses General and administrative expenses Net operating income Interest revenues Net income (57,997) 16,991 (10.881) (10,841) (4,731) 900 (3,831) Comparative Balance Sheet Liabilities & Stockholders' 20X1 20X0 Equity Stockholders' equity: 20X1 20X0 116,529 86,975 Common stock 16,550 5,707 Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets (27,231) (29) 3,802 89.298 16,521 9,509 1.470 90,768 (18.843) Retained eamings Total stockholders' 68,132 equity Long term 1,665 liabilities: 69,797 Long-term debt Total long-term liabilities Current liabilities: 1,583 1,000 42,021 1,000 42,021 Current assets: Cash and cash equivalents Accounts receivables 1.159 7.045 5,374 Accounts payable 13,428 8,179 6.606 4,014 Notes Payable 13,204 12,425 Inventories Prepayment accounts 765 600 1,545 Total current assets 15,575 61,590 8,018 929 Short-term debt Current portion of 11,900 long-term debt Total current liabilities Total liabilities Total liabilities & 81,697 stockholders' equity 88,822 89,122 30,167 72,188 Total assets 106,343 106,343 81,697 74,988 Income Statement Sales Cost of goods Gross margin Selling expenses General and administrative expenses Net operating income Interest revenues Net income (57,997) 16,991 (10.881) (10,841) (4,731) 900 (3,831)