Assignment Assignment Salza Technology Corporation increased its sales from $375,000 in 2017 to $450,000 in year 2018 as is shown in the firm’s income statements presented below. LeAnn Sands, chief...

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Assignment Assignment Salza Technology Corporation increased its sales from $375,000 in 2017 to $450,000 in year 2018 as is shown in the firm’s income statements presented below. LeAnn Sands, chief executive officer (CEO) and founder of the firm expressed concern that the cash account and the firm’s marketable securities declined substantially between 2017 and 2018. Salza’s complete balance sheets are also shown below. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology. Annual Income Statements (in $ Thousands) 2017 2018 Net sales $375 $450 Less: Cost of goods sold 225 270 Gross profit 150 180 Less: Operating expenses 46 46 Less: Depreciation 25 30 Less: Interest 4 4 Income before taxes 75 100 Less: Income taxes 20 30 Net income 55 70 Cash dividends $17 $20 Balance Sheets as of December 31 (in $ Thousands) 2017 2018 Cash $ 39 $ 16 Accounts receivable 50 80 Inventories 151 204 Total current assets 240 300 Gross fixed assets 200 290 Less accumulated depreciation (95) (125) Net fixed assets 105 165 Total assets $345 $465 Accounts payable $ 30 $ 45 Bank loan 20 27 Accrued liabilities 10 23 Total current liabilities 60 95 Long-term debt 15 15 Common stock 85 120 Retained earnings 185 235 Total liabilities and equity $345 $465 A. Prepare a statement of cash flows for 2018 for the Salza Technology Corporation. B. What are the cash flows from (a) operating activities, (b) investing activities, and (c) financing activities. C. Indicate the extent to which Salza was building or burning cash in 2018. D. Convert the 2018 annual cash build or cash burn to a monthly rate. If cash flow activities relating to operations and investing for 2018 continue into 2019, indicate: (1) how long it will be before Salza runs out of cash (if Salza is burning cash), or (2) the expected 2019 year-end cash account balance if Salza is building cash. Assume no changes in cash flows from financing activities in 2019 for calculation purposes. PAGE