Question 2 "Why can't we pay our shareholders a dividend?\" shouts your new boss at Polar Opposites. "This income statement you prepared for me says we earned $5 million in our first year!" You recently prepared the financial statements below. POLAR OPPOSITES Income Statement For the year ended December 31, 201B {S in millions) Net sales $65 W Depreciation expense {4} W Net income $_5 POLAR OPPOSITES Balance Sheet December 31, 2018 {S in millions) Cash $1 Accounts receivable {net} 16 Merchandise inventory 14 Machinery {net} Total assets Accounts payable $7 Accrued expenses payable 9 p Common stock 25 Retained earnings _5 Total liabilities and stockholders' equity Although net income was $5 million, cash flow from operating activities was a negative 55 million. This just didn't make any sense to your boss. Required: Prepare a memo explaining how net income could be positive and operating cash flows is negative. Include in your report the calculation of operating cash flows of negative $5 million using the indirect method