A security analyst obtained the following information fromPrestopino Products financial statements: Retained earnings at the end of 2009 were $700000 but retainedearnings at the end of 2010 had declined to $320000. The company does not pay dividends. The companys depreciation expense is its only non-cash expense;it has no amortization charges. The company has no non-cash revenues. The companys net cash flow (NCF) for 2010 was $150000.On the basis of this information which of the following statementsis CORRECT? (Points: 10)Prestopino had negative net income in 2010.Prestopinos depreciation expense in 2010 was less than$150000.Prestopino had positive net income in 2010 but its income was lessthan its 2009 income.Prestopinos NCF in 2010 must be higher than its NCF in 2009.Prestopinos cash on the balance sheet at the end of 2010 must belower than the cash it had on the balance sheet at the end of2009.