Question #3 - Cash Flow Statement & Financial Statement Analysis JATIN CORPORATION Comparative Statements of Financial Position December 31, 2021 2021 2020 Cash. 43,000 24,000 Accounts receivable (net) 31,000 38,000 Inventory 118,000 82,000 Land 120,000 190,000 Building 200,000 200,000 Accumulated depreciation (50,000) (40,000) Equipment..... 1,030,000 600,000 Accumulated depreciation. (118,000) (94.000) $1.374.000 $1.000.000 Accounts payable.... $ 115,000 $ 100,000 4% Bonds payable 320,000 -0- Common shares. 750,000 750,000 Retained earnings.. 189,000 150.000 $1.374.000 $1.000.000 Additional information: 1. The piece of land was sold for $80,000 2. Old equipment was sold for $70,000. This equipment had a cost of $150,000 and accumulated depreciation of $60,000 to date of sale. To replace this, new equipment was purchased. 3. During the year, cash dividends were paid ($45,000) Required: a) Using the indirect method, please prepare a statement of cash flows for 2021 in proper format. (16 marks) b) Based on the cash flow analysis, how would you say the Company is performing overall? (Hint: Use tools from your group projects financial statement analysis to analyze the cash flow statement)