"This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a vertical analysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part. Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015. They have completed the balance sheet and income statement as shown. Philadelphia Widget Corporation Income Statement For the year ended 12/31/2015 Revenue12,35,000 Cost of Goods Sold 8,06,356 Gross Profit 4,28,644 Administrative Expenses: Salaries 2,12,450 Rent 82,500 Depreciation 24,800 Total Administrative Expense 3,19,750 Operating Profit 1,08,894 Gain on Sale of Equipment4,500 Interest Expense (42,115) Net Income71,279 Philadelphia Widget Corporation Balance Sheet As of 12/31/2015, 12/31/2014, and 12/31/2013 2015 2014 Cash 1,19,411 Accounts Receivable85,455 Inventory41,600 Prepaid Expenses14,500 Total Current Assets 2,60,966 Land50,000 Buildings and Equipment 1,82,4501,72,450 Accumulated Depreciation 78,900 1,03,550 62,600 Total Assets 4,14,516 Accounts Payable62,525 Wages payable4,500 Unearned Revenue3,000Current Portion of Long-Term Debt50,000 Total Current Liabilities 1,20,025 Long-Term Debt 1,75,000 Common Stock, 3500 shares outstanding 35,000 35,000 Retained Earnings 84,491 33,212 Total Stockholders' Equity 1,19,491 Total Liabilities and Equity 4,14,516 A. Prepare a Statement of Cash Flow using the indirect method for 2015 using the above statements and the following additional information:1. Equipment costing $30,000 was purchased in 2015.2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015.3. A dividend of $20,000 was declared and paid in 2015. Philadelphia Widget Corporation Statement of Cash Flow For the year ended 12/31/2015 Amount ($) Cash Flow from OperatingActivites Net Income 71,279 Add (Deduct ) noncash effect on operating income Depreciation Expenses24,800 Gain on Sale of Equipment (4,500) Increase in Account Receivable (2,337) Decrease in Inventory6,960 Decrease in Prepaid Expenses3,600 Unearned Revenue3,000 Increase in Account Payable11,04542,568 Net cash provided by operating activities1,13,847 Cash flow from Investment Activities Sale of Equipment16,000 Purchase of Equipment (30,000) Net Cash used in investment activities(14,000) Cash Flow from Financing Activites Payment of Long Term Loan (50,000) Payment of Dividend (20,000) Net Cash Provided by Financing Activities(70,000) Net increase in Cash 29,847Cash Balance on 1/1/2015 89,564 Cash Balance on 31/12/20151,19,411 B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet. Philadelphia Widget Corporation Vertical Analysis of Income Statement Revenue12,35,000 Cost of Goods Sold 8,06,356 Gross Profit 4,28,644 Operating Expenses Salaries 2,12,450 Rent 82,500 Depreciation 24,800 Interest Expense 42,215-3,61,965.00 Gain on Sale of Equipment4,500 Income before Tax 71,179.00 Net Income 71,179.00 Philadelphia Widget Corporation Horizontal Analysis of Balance Sheet Common Stock, 3500 shares outstanding 35,000 Retained Earnings 84,491 Total Stockholders' Equity 1,19,491 Long-Term Debt 1,75,000 Accounts Payable62,525 Wages payable4,500 Unearned Revenue3,000 Current Portion of Long-Term Debt50,0004,14,516* n/c = not calculable C. Calculate the following ratios based on 12/31/2015 numbers:1. Earnings per share 204%2. Return on common stockholder's equity 20.373. Return on assets 106.3%4. Current ratio 2.175. Acid-test ratio 1.716. Accounts receivable turnover 14.65"