ABC Company's current financial information

ABC Company's current financial information (before/without expansion)              
     Dec. 31,20X2      Dec. 31,20X1    
Cash       $50,000  $70,000
Accounts receivable (net)       $120,000  $180,000
Merchandise inventory       $350,000  $280,000
Property plant, & equipment      $400,000  $300,000
Less: Accumulated depreciation      ($170,000) ($100,000)
Total assets       $750,000  $730,000
Accounts payable       $250,000  $210,000
Income taxes payable       $40,000  $10,000
Common stock       $240,000  $240,000
Retained earnings       $220,000  $270,000
Total liabilities & stock, equity       $750,000  $730,000
              
The firm's accrual-basis income statement revealed the following data:              
Sales      $1,200,000  
Cost of goods sold     $800,000  
selling and administrative expenses     $250,000  
Depreciation expense     $70,000  
Income taxes      $30,000  
Dividends declared and paid during 19X2      $100,000  
  
ABC purchased $100,000 of equipment for cash on August 14.              
              
(There was no interest expense.)  
Current company cash flow  
  
a. You need to complete a cash flow statement for the company using the direct method.  
b. Once you’ve completed the cash flow statement, answer the following questions:  
  
        i. What does this statement of cash flow tell you about the sources and uses of the company?  
        ii. Is there anything ABC Company can do to improve the cash flow?  
        iii. Can this project be financed with current cash flow from the company? Why or why not?  
        iv. If the company needs additional financing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company obtain the additional financing, equity or corporate debt, and why?