If possible, please attach or show all the calculations in excel

Mini Case: CASH FLOWS AT WARF COMPUTERS, INC. Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group has supplied the limited additional investment needed by the company in the form of both equity and short- and long-term debt. Recently the company has developed a virtual keyboard (VK). The VK uses sophisticated articial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to preset user guidelines. The VK even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond what is currently on the market. To introduce the VK, the company will require signicant outside investment. Nick has made the decision to seek this outside financing in the form of new equity investments and bank loans. Naturally, new investors and the banks will require a detailed financial analysis. Your employer, Angus Jones & Partners, LLC, has asked you to examine the nancial statements provided by Nick. Here are the balance sheet for the two most recent years and the most recent income statement: WARF COMPUTERS Balance Sheet ($ in thousands) 2010 2009 2010 2009 Current assets Current liabilities Cash and equivalents $ 290 $ 251 Accounts payable $ 262 $ 245 Accounts receivable 459 428 Notes payable 71 66 Inventories 411 425 Accrued expenses 158 257 Other 59 50 Total current $ 491 $ 568 Total current assets $ 1.219 $1.154 liabilities Fixed assets Long-term liabilities Property, plant, and $ 2.631 $2,038 Deferred taxes $ 212 $ 103 equipment Long-term debt 756 736 Less accumulated 859 700 Total long-term $ 968 839 depreciation liabilities Net property, plant, and $ 1,772 $1,338 Stockholders' equity equipment Preferred stock 13 13 Intangible assets and others 508 454 Common stock 81 80 Total fixed assets $ 2,280 $1,792 Capital surplus 509 499 Accumulated retained 1,558 1,028 earnings Less treasury stock 121 81 Total equity $2,040 $1,539 Total liabilities and Total assets $ 3,499 $2.946 shareholders' equity $3.499 $2.946 Nick has also provided the following information: During the year the company raised $118,000 in new long-term debt and retired $98,000 in long-term debt. The company also sold $11,000 in new stock and repurchased $40,000 in stock. The company purchased $786,000 in fixed assets and sold $139,000 in fixed assets. WARF COMPUTERS Income Statement ($ in thousands) Sales $4,844 Cost of goods sold 2,858 Selling, general, and administrative expense 543 Depreciation 159 Operating income $1.284 Other income 48 Earnings before interest and taxes (EBIT) $1,332 Interest expense 95 Pretax income $1,237 Taxes 495 Current: $386 Deferred: 109 Net income $ 742 Addition to retained earnings $ 530 Dividends $ 212 Angus has asked you to prepare the financial statement of cash flows and the accounting statement of cash flows. He has also asked you to answer the following questions:1. How would you describe Warf Computers' cash flows? 2. Which cash flow statement more accurately describes the cash flows at the company? 3. In light of your previous answers, comment on Nick's expansion plans