PROBLEM 14A-5 Prepare and Interpret a Statement of Cash Flows LO14-1, L014-4 Refer to the financial statements for Rusco Company in Problem 14-13. Because the Cash accou decreased so dramatically during this year, the company's executive committee is anxious to nt how the income statement would appear on a cash basis. Required: I. Using the direct method, adjust the company's income statement for this year to a cash basis. 2 Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year. 3. Briefly explain the major reasons for the sharp decline in cash during this year