Salza Technology Corporation increased its salesfrom $375,000 in 2012 to $450,000 in 2013 as shown in the firm ’ s income statements presented below.LeAnn Sands, chief executive officer and founder of the firm, expressed concern that the cash accountand the firm ’ s marketable securities declined substantially between 2012 and 2013. Salza ’ s complete bal-ance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology. A. Prepare a statement of cash flows for 2013 for Salza Technology Corporation. B. Provide a brief description of what happened in terms of cash flows (both inflows and outflows) forSalza between 2012 and 2013. Salza Technology Corporation Annual Income Statements (in $ Thousands) 2012 2013 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) 2012 2013 Cash $39 $16 Accounts Rece 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 Accured Liabilities 10 23 Total Current Liabilities 60 95 Long-Term Debt 15 15 Common Stock 85 120 Retained Earnings 185 235 Total Liabilities & Equity $345 $465

Salza Technology Corporation How much is Operating cash flow?