Question 2 (20 points) Kim Possible Integrated Toys Ltd. Statement of Cash Flow Year Ended December 31, 2009 Operating activities 2009 Net income $48,000 Amortization 49,000 Increase in accounts receivables (29,000) Increase in inventory (2000) Decrease in prepaids 2000 Increase in accounts payable 20000 Decrease in accruals (4.000) 84.000 Investing activities Purchase of investments (9,000) Purchase of Property, Plant and Equipment (157,000) (166,000) Financing activities Borrowed with long term debt 100,000 Payments on long term debt (9,000) Payment of dividends (12.000) 79.000 Decrease in cash (3,000) Cash, beginning of year 32.000 Cash, end of year Required: $29,000 You have been approached by Scrooge McDuck Investments to look at Kim Possible Integrated Toys Ltd. Based on the statement of cash flow presented above: Intrepid the statement of cash flow (is the company healthy, start up/changing direction or in financial distress), explain what state you have chosen and how your decision was impacted by the activities cash flows. In addition, is there any other information you would like to see before you would advise Scrooge McDuck to invest in this company other than that presented? Discuss.