SPECALPROBLEM w is a simplified, partial Statement of Cash Flows. Although the ta is fictitious, it is based on a real life situation. da STATEMENT OF CASH FLOWS (in thousands) Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash (used) provided by operating activities: Depreciation Changes in assets and liabilities: 6,000 Accounts receivable, net Inventories Other current assets Accounts payable-trade 28,000) 30,000) 3,000 1,000 Total adjustments Net cash provided (used) by operating activities 8,000) Cash flows from investing activities: Sales (Purchases) of marketable securities, net Acquisition of property, plant and equipment 2,000 11,000 Net cash provided(used) by investing activities(9,000) Cash flows financing activities: Net proceeds from issuance of common stock Purchase of treasury stock Bank borrowings Dividends paid 50,000 1,000) 21,000 10,000] 60 Net cash provided (used) by financing activities 43,000 Net change in cash during period 69 ACTION REQUIRED BY STUDENTS. e you satisfied with the Net Income of the corporation? Ar .Do you have any comments on the quality of the Net Income? -Cash for the year increased by $43000. Are you satisfied with this? Why? -Solely conconsidering the data reflected in the Statement of Cash Flows is this a corporation you may be interested in buying its stock? -If you were hired to be the CFO of this corporation can you anticipate what would be some of your initial steps/action plan based on the data reflected in the above Statement of Cash Flows