I need help with question a, please!

$490,000 3 Toshiro Tools Ltd sells car parts through an online platform. Mkyta a very bright graduate from EU has been given comparative income statements and balance sheets for the past two years so that he can prepare a cash flow statement. He has also been given following additional information Additional Information 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 Sales ......... $500,000 $ 350,000 Less: Cost of goods sold 200,000 140,000 Gross profit on sales ....... $300,000 $ 210,000 Less: Operating expenses (including depreciation of $34,000 in 2014 and $35,000 in 2015) 260,000 243,000 Loss on sale of marketable securities 1,000 Net Income (loss) .................... $ 40.000 ($ 34,000) TOSHIRO TOOLS Balance sheet as at 31 December 2018 2019 Assets Cash and cash equivalents $ 10,000 $ 60,000 Marketable securities 20,000 5,000 Accounts receivable 40,000 23,000 Inventory ....... 120,000 122,000 Plant and equipment (net of accumulated depreciation) 300,000 285.000 Totals $490,000 $495.000 Liabilities & Stockholders' Equity Accounts payable $ 50,000 $ 73,000 Accrued expenses payable 17,000 14,000 Note payable ...... 245,000 253,000 Capital stock (no par value) 120,000 135,000 Retained earnings 58,000 20,000 Totals $495,000 wy -0 Page 16 INSTRUCTIONS a) Prepare a formal statement of cash flows for 2015 to be presented by the indirect method. Please show workings. You may use template provided Workings 25% and final statement 15% b) Explain how Toshiro tools Ltd., achieved positive cash flows from operating activities, despite incurring a net loss for the year. 5%