Using the financial statements and notes provided below, prepare a cash flow analysis for the Penelope Company for 2019. Penelope Company Income Statement For the Year Ended December 31, 2019 Revenues $2,467,000 Cost of Goods Sold 1,285,000 Gross Margin 1,182,000 Operating Expenses: Selling Expenses 230,000 Administrative Expenses 94,000 Depreciation 15,000 Total Operating Expenses 339,000 Operating Income 843,000 Other Items: Loss on Sale of Patent (11,000) Interest Expense (42,000) Other Items (53,000) Net Income Before Taxes 790,000 Taxes 316,000 Net Income After Taxes $474,000 A review of the notes to the financial statements revealed the following information: Dividends of $210,000 were declared and paid during the year. Selling Expenses include charges of $10,000 for the amortization of trademarks. During 2019 the company sold the only patent that had been reflected on its balance sheet at the beginning of the year. Hint: Consider the beginning balance in the Patent account and the loss on the sale in entering a figure on the cash flow statement. The total depreciation reflected on the income statement amounted to $87,000. Factory-related depreciation of $72,000 is included within cost of goods sold. Note Ignore the last three zeros at the end of each figure in completing this problem. For example, express the net income after taxes of $474,000 as simply +474 in your cash flow statement. Penelope CompanyBalance Sheets As ofDecember 31st20192018Changes$ 97,000114,000211,00037,000459,000$ 118,000136,000148,00029,000431,000$ (21,000)(22,000)63,0008,00028,000CashNet Accounts ReceivableInventoriesPrepaid ExpensesCurrent AssetsBuildings & Equipment990,000(187,000)803,000146,000182,000540,000(100,000)440,00082,00051,00067,00076,000716,000450,000(87,000)363,00064,000131,000(67,000)(12,000)479,000Allowance for DepreciationNet Plant and EquipmentLess:LandLong-term InvestmentsPatentsTrademarks64,0001,195,000Total Long-Term AssetsTotal Assets$1,654,000 $1,147,000$507,000Accounts PayableAccrued ExpensesTaxes PayableCustomer DepositsTotal Current Liabilities$111,00028,00050,00077,000266,000$ 80,00086,00040,00051,000257,000$ 31,000(58,000)10,00026,0009,000Long-Term Notes PayableBonds PayableTotal Long-term Liabilities194,000344,000538,000180,000178,000358,00014,000166,000180,000Total Liabilities$804,000$615,000$189,000Common Stock ($5 Par Value)Paid-in CapitalRetained EarningsTreasury Stock208,000340,000377,000(75,000)181,000253,000113,000(15,000)27,00087,000264,000(60,000)Total Owners' Equity$850,000$532,000$318,000Total Equities$1,654,000 $1,147,000$507,000 Cash Flow Analysis - Using the data above, prepare Penelope'scash flow statement for 2019. Ignore the last thee zeros in eachfigure.each item in your response.Place a + or - sign beforeCash Flow AnalysisIn thousandsFrom Operations:o Incomeo Depreciation of Buildings & Equipmento Amortization of trademarkso Loss on sale of patento Decrease in accounts receivable (net)o Increase in inventorieso Increase in prepaid expenseso Increase in accounts payableo Decrease in accrued expenseso Increase in taxes payableo Increase in customer depositso Net From OperationsFrom Investment Activities:o Acquisition of buildings & Equipmento Acquisition of lando Long-term investmentso Sale of patento Net From Investment ActivitiesFrom Financing Activities:o Issuance of long-term notes payableo Issuance of bonds payableo Issuance of common stocko Payment of dividendso Acquisition of treasury stocko Net From Financing ActivitiesOverall Cash Flow

Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Using the financial statements and notes provided below, prepare a cash flow analysis for the Penelope Company for 2019. Penelope Company Income Statement For the Year Ended December 31, 2019 Revenues $2,467,000 Cost of Goods Sold 1,285,000 Gross Margin 1,182,000 Operating Expenses: Selling Expenses 230,000 Administrative Expenses 94,000 Depreciation 15,000 Total Operating Expenses 339,000 Operating Income 843,000 Other Items: Loss on Sale of Patent (11,000) Interest Expense (42,000) Other Items (53,000) Net Income Before Taxes 790,000 Taxes 316,000 Net Income After Taxes $474,000 A review of the notes to the financial statements revealed the following information: Dividends of $210,000 were declared and paid during the year. Selling Expenses include charges of $10,000 for the amortization of trademarks. During 2019 the company sold the only patent that had been reflected on its balance sheet at the beginning of the year. Hint: Consider the beginning balance in the Patent account and the loss on the sale in entering a figure on the cash flow statement. The total depreciation reflected on the income statement amounted to $87,000. Factory-related depreciation of $72,000 is included within cost of goods sold. Note Ignore the last three zeros at the end of each figure in completing this problem. For example, express the net income after taxes of $474,000 as simply +474 in your cash flow statement.