Income Statement Year 2 Year 1 Balance Sheet Year 2 ASSETS Cash 475 Account Receivable 3,936 Inventory 2,966 Prepayments 270 Total Current Assets 7,647 PPE, al cost 6,165 Less: Accum. Depreciation 1,567 Other Assets 559 Total Assets 12,804 22,833 16518 -4849 430 3,768 2,334 116 6,648 4,732 -926 193 10,647 Sales COGS Selling and Admin Exp. Interest Expense Income Tax Expense -459 -590 Net Income 417 Notes: a. No sale of PPE during the year. b. The changes in Other Noncurrent Assets are investing activities. c. The changes in deferred income taxes are operating transactions 1,578 REQUIREMENTS: LIABILITIES & SHAREHOLDERS'S EQUITY Account Payable 809 Notes Payable 231 11 Current portion of L-T Debt 0 0 Other current liabilities 777 1,076 Total Current Liabilities 1,817 2,665 L-T Debt 4,692 2,353 Deferred Income Tax 89 126 Total Liabilities 6,598 5,144 Preferred Stock 289 Common Stock 85 83 Additional PIC 1,392 4,385 Retained Earnings 1,440 1,035 Total shareholders' equity 6,206 5,503 1. Prepare the statement of cash flow for year 2 using indirect method 2. Comment on the operating, investing, and financing activities of the firm