On the basis for the following data

(3 part question)

1. (50 pts.) On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period Stock was issued for cash -3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000. Cash Accounts Receivable (net) Inventories Equipment Accumulated Depreciation Current Year Prior Year $170,000 74,000 85,000 90,000 395,000 370,000 78,000 106,500 $554,500 $461,000 Accounts Payable (merchandise creditors) Taxes Payable Common Stock, $10 par Retained Earnings $ 51,000 50,000 5,000 262,000 230,000 239,000 176,000 $554,500 $461,000 2,500 5 pts) Using the Balance Sheet from above, comduct a horizontal analysi to determine the changes in balance sheet accounts for the years shown. 3. (25 pts) Compute the following analytical measures for the current year assuming the current market value of common stock is $20 per share: Solvency Measures: Current Ratio Quick Ratio Profitability Measures: Earnings per share of common stock Dividends per share of common stock Dividend Yield Perform any other analysis you feel is appropriate. Write a brief assessment of the financial condition of this company, based upon the above analytical measures. Would you recommend purchasing the stock? Why or why not