Problem 6 (16 Marks) Consider the following financial statements for Yahi Inc. Balance Sheet 2017 2018 Assets Current assets $6,500 $5,000 Cash $31,500 $42,000 30,000 Accounts receivable 40,000 Inventory $75,000 $80,000 Total Fixed assets $393,750 Net plant and equipment 375,000 Total assets $450,000 $473,750 Liabilities and Owners Equity Current liabilities Accounts payable $50,000 $53,750 Notes payable 25,000 $26,250 $80,000 Total $75,000 Long-term debt Owners' equity $85,000 $89,250 Common stock Accumulated retained carnings $63,000 $60,000 230,000 241,500 Total $290,000 $304,500 Total liabilities and owners' $450,000 $473,750 equity Income Statement for 2018 Sales $400,000 COGS 200,000 Depreciation 30,000 EBIT s170,000 Interest 15,000 T $155,000 es (45%) 69,750 Net income $85,250 a. Please prepare a statement of cash flows for Yahi Inc. for year 2018. (8 Marks) b. Using the information given determine whether the firm is likely to be prone to financial distress during bad economic times. Please make use of the information related to the firm's capital structure. (2 Marks) c. Calculate the Cash Flow from Assets (CFFA). Does the CF identity hold? (6 Marks)