Based on the income and the statements of cash flows from 2011 through 2015, did Mr. Martin have positive net income an cash flow? Please show all work. Background MartinCo is a small company that has been in the Martin family for several generations. In 2010, Mr. Martin added a new business line selling an exclusive and unique image processing sensor that he had developed. For the last years, the business unit had done quite well, exceeding Mr. Martin’ and the Board of Director’s expectations. Given that MartinCo had never worked in the image processing industry, the project had originally been viewed as extremely risky with several of the board members recommending against it. Even so, the project had prevailed and the business unit had done well. Recently, Mr. Martin had received inquiries from a major Photography and Imaging firm (Canikon, Inc.) to exclusively use his image processing sensor or to purchase the rights to the sensor outright with the intent of getting a larger manufacturer to produce the product. Mr. Martin is faced with a dilemma. Should he choose to keep the rights to his product, he will have to ramp up production to meet the demands of Canikon. Alternatively, should Mr. Martin chooses not to expand his image processing business unit to meet Canikon\'s propositions, Canikon could independently develop a similar sensor and cut him out of the market altogether. Mr. Martin is loath to give up the rights to his designs and brand and realizes that he might have to do so if the numbers don’t fall out well for his product. Mr. Martin wants to compile a report for the business unit that will give him some insight into its present operation and potentially a better understanding of whether an expansion would be a feasible undertaking. A big concern that Mr. Martin has is that Canikon intends to, and would be able to significantly underprice his present product and cost structure. Canikon is currently a leading distributor in the Photography and Imaging industry. Hence, the company has the ability to source a larger manufacturer to produce a similar type of sensor and would able to bring economies of scale to bear that Mr. Martin would have difficulty achieving. ------------------------------------------ Product Development and Initial investments Mr. Martin invested significant time and expense in the development of his unique Image Processing Sensor. He went through extensive development, testing, consumer feedback, promotional giveaways and effort before proposing the product and business line to the board members. All in all he had produced one hundred and fifty units before even having a fully functional production line. Mr. Martin presented his ideas to the board at the 2nd quarter Board of Directors meeting of 2010. Although there was some hesitation, the Board of Directors approved the project and expected the purchase of equipment to be finalized with plans to have the sensors to run off the lines and delivered to the dis.