Sohni Dharti International is a renowned seed company and they want to expand their business.
They hire you as a financial expert and provide you following financial records for the years of 2019
and 2020. Company has Cash $53,000 in 2019 and $31,000 in 2020, Marketable securities $87,000
in 2019 and $0 in 2020, Account Receivable $346,000 in 2019 and $528,000 in 2020, Account
payable in 2019 is $13,000 and in 2020 is $27,000, Bank borrowing in 2019 is $10,000 and in 2020
is $35,000, common stock is $100,000 in both 2019 and 2020,purchase and sales is $0 in both 2019 and 2020. Being a financial expert prepare cash
flow statement by using direct method and then give your opinion whether company has sufficient
funds to take advantage of investment opportunities or not?