1. a) Prepareaformalstatementofcashflowsfor2015tobepresentedbytheindirect method. Please show the workings.

2. b) Explain how Toshiro tools Ltd., achieved positive cash flows from operating activities, despite incurring a net loss for the year.

The following information regarding the company's operations in 2019 is available from the company's accounting records: a. Early in the year the company declared and paid a $4,000 cash dividend. b. During the year marketable securities costing $15,000 were sold for $14,000 cash, resulting in a $1,000 non operating loss. C. The company purchased plant assets for $20,000, paying $2,000 in cash and issuing a note payable for the $18,000 balance. d. During the year the company repaid a $10,000 note payable, but incurred an additional $18,000 in long-term debt as described in c. e. The owners invested $15,000 cash in the business as a condition of the new loans described in d. TOSHIRO TOOLS Income statement for year 2018 2019 $500,000 200,000 $300,000 $ 350,000 140,000 $ 210,000 Sales Less: Cost of goods sold Gross profit on sales Less: Operating expenses (including depreciation of $34,000 in 2014 and $35,000 in 2015) Loss on sale of marketable securities Net income (loss). 260,000 -0- $ 40,000 243,000 1,000 ($ 34,000) TOSHIRO TOOLS Balance sheet as at 31 December 2018 2019 Assets Cash and cash equivalents Marketable securities Accounts receivable Inventory Plant and equipment (net of accumulated depreciation) Totals $ 10,000 20,000 40,000 120,000 $ 60,000 5,000 23,000 122,000 300,000 $490,000 285,000 $495,000 Liabilities & Stockholders' Equity Accounts payable Accrued expenses payable Note payable Capital stock (no par value) Retained earnings Totals $ 50,000 17,000 245,000 120,000 58,000 $490,000 $ 73,000 14,000 253,000 135,000 20,000 $495,000