1. Operating Cash Flows The financial statements of Flickmark Corporation provide the following informationfor the year 2020: Cash Account Receivable Interest Receivable Inventory Short-term Prepayments Account Payable (for Merchandise Accrued operating expenses payable Accrued Income taxes Payable Net sale Interest Revenue Cost of goods sold Operating expenses (Including depreciation of $60,000) Income taxes expense End of Beginning of Year Year 1,500,000 524,600 201,000 221,000 100,000 80,000 249,000 233,000 12,000 9,500 177,000 170,000 25,500 33,200 12,600 15,500 801,000 60,000 465,000 320,000 39,000 Aug 4 Sept 2 Issued capital stock in exchange for $800,000 with cash receipt of $600,000.00 and $200,000 in credit Purchased office equipment on account for $85,600 Dec 6 Declared Dividend of $45,000.00 and made cash payment of $20,000.00 Dec 22 Paid $55,000.00 on the office equipment purchased on August 4 Dec 31 Paid Interest of $4,500.00 of Note payable Equipment was purchased on 01/01/2015 for $640,000 with a useful life of 10 years and a residual value of $40,000.00. Flickmark uses the straight line depreciation method. The equipment was sold for cash on December 31, 2020 for $380,000.00 Question: 1. Use the information above to prepare the statement of Cash flow for the year 2020 using the direct method. 2. Compute the gain or loss on sales of the equipment