Statement of cash Flows Constructing the Statement Illustration Toronto Technology Corporatio Condensed Balance sheets December 31 Changes during Year 2 Operating Investing Financing Transactions Noncash (in thousands)L Year 1 Year 2 Activity Activit Act [caSh $120$100 2FAccounts receivable 200 145$55 [3]Inventories 150 (25) 4Fixed assets 660 874 $(214) [5]Accumulated depreciation(200)(244) (20) [6]Intangible assets 150 100 50 Total assets $1,0801,150 [aCCounts payable 150$130 [8l-Long-term deb 420 400 $(10)$(10) 9HCapital stock accounts 250 300 10 [10FRetained earnings 260 320 180 (120) Total liabilities and equity $1,080s1,150 Totals 304$(234)$(90)$0Illustration: Toronto Technology Corporation Condensed Balance Sheets December 31 Changes during Year 2* Operating Investing Financing Noncash (in thousands) Year 1 Year 2 Activity Activity Activity Transactions [1]–Cash $ 120 $ 100 [2]–Accounts receivable 200 145 $ 55 [3]–Inventories 150 175 (25) [4]–Fixed assets 660 874 $ (214) [5]–Accumulated depreciation (200) (244) 64 (20) [6]–Intangible assets 150 100 50 Total assets $1,080 $1,150 [7]–Accounts payable $ 150 $ 130 (20) [8]–Long-term debt 420 400 $ (10) $ (10) [9]–Capital stock accounts 250 300 40 10 [10]–Retained earnings 260 320 180 (120) Total liabilities and equity $1,080 $1,150 Totals $ 304 $ (234) $ (90) $ 0 Statement of Cash Flows Constructing the Statement