Question # 1Resource: Ch. 22 of Intermediate AccountingLocate an article from a financial periodical from the past 2 years about a company thatrestated its financial statements due to an error in accounting principal. Examples ofperiodicals are CFO and Journal of Accountancy. Write a paper of no more than 700 words with references discussing the restatement of thecompany, the accounting principals involved, the effect of errors and changes on financialstatements, and the affect on the stockholders. Format your paper consistent with APA guidelines. Question # 2 please: Ron Nord and Lisa Smith are examining the following statement ofcash flows for Carpino Company for the year ended January 31, 2007. CARPINO COMPANYStatement of Cash FlowsFor the Year Ended January 31, 2007Sources of cashFrom sales of merchandiseFrom sale of capital stockFrom sale of investment (purchased below)From depreciationFrom issuance of note for truckFrom interest on investmentsTotal sources of cashUses of cashFor purchase of fixtures and equipmentFor merchandise purchased for resaleFor operating expenses (including depreciation)For purchase of investmentFor purchase of truck by issuance of noteFor purchase of treasury stockFor interest on note payableTotal uses of cashNet increase in cash$380,000420,00080,00055,00020,0006,000961,000330,000258,000160,00075,00020,00010,0003,000856,000$ 105,000Ron claims that Carpino’s statement of cash flows is an excellentportrayal of a superb first year with cash increasing $105,000. Lisareplies that it was not a superb first year. Rather, she says, the year wasan operating failure, that the statement is presented incorrectly, and that$105,000 is not the actual increase in cash. The cash balance at thebeginning of the year was $140,000. InstructionsWith the class divided into groups, answer the following. a. Using the data provided, prepare a statement of cash flows inproper form using the indirect method. The only noncash items inthe income statement are depreciation and the gain from the saleof the investment. b. With whom do you agree, Ron or Lisa? Explain your position. Resource: Ch. 12 of Financial AccountingRead the scenario presented in Broaden Your Perspective (BYP) 12-6 on p. 641 in Ch. 12of Financial Accounting. Prepare the statement of cash flows using the indirect method. The only noncash items aredepreciation and the gain on sale from investments. Write a memo to shareholders explaining whether the organization had a performing orunderperforming first year. Discuss the reasons for your conclusion, referencing actual numbers from the statement ofcash flows you developed.