1. Chapman Company, a major retailer of bicycles and accessories, operates several stores and is publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2020 are as follows. The company is preparing a statement of cash flows. Chapman Company Comparative Balance Sheet As of May 31 2020 2019 Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets $28,250 75,000 220,000 2,000 332,250 $20,000 58,000 250,000 7,000 335,000 Plant Assets Plant Assets Less: Accumulated Depreciation Net Plant Assets 600,000 (150,000) 450,000 502,000 (125,000) 377,000 Total Assets $782,250 $712,000 Current liabilities Accounts Payable Salaries and Wages Payable Interest Payable Total Current Liabilities $123,000 47,250 27,000 197,250 $115,000 72,000 25,000 212,000 Long-term Debt Bonds Payable Total Liabilities 70,000 267,250 100,000 312,000 Stockholder's Equity Common Stock, $10 par Retained Earnings Total Stockholder's Equity 370,000 145,000 515,000 280,000 120,000 400,000 Total Liabilities Plus Equity $782,250 $712,000 Chapman Company Income Statement For the Year Ending May 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit $1,255,250 722,000 533,250 Expenses Salaries and Wages Interest Expense Depreciation Expense Other Expense Total Expenses 252,100 75,000 25,000 8,150 360,250 Operating Income Income Tax Expense Net Income 173,000 43,000 130,000 The following is additional information concerning Chapman's transactions during the year ending May 31, 2020. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total Accounts Payable account. 3. Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock. 4. The other expenses are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement cash, Chapman issued 2,000 shares of common stock at par value. 7. Cash dividends of $105,000 were declared and paid at the end of the fiscal year. (25 points) Using the indirect method, calculate net cash flow from operating activities for Chapman Company for the year ending May 31, 2020. Then calculate cash flow from investing and financing activities, and complete the cash flow statement for the firm