2 of 24 0 Question : Statement of Cash Flows (13 marks: 23 minutes) The following unclassified statement of financial position votatus to Lobo Incas at December 31: LOBO INC Comparative Statement of Financial Positive December 31 2020 Assets Cash is bank $111.000 $ 120.000 Accounts recent 230,000 303.000 Lavel 190.000 160.000 Prepaid expenses 14.700 Land 60.000 72,500 Plan de 125.000 35.500 Totales 5950.700 09.09 Liabilities and Shareholders' Equity Accounts payable $100,000 $ 40,000 Accred liabilities 21,200 30,000 Dividends payable 38.000 0 Bonde payable, et 103.000 105.000 Common shares 600,000 600,000 Retained camins $8.000 14.000 Total liabilities and shareholders' equity 5950.700 5209.000 Lobo's condensed statement of earnings for the year ended December 31, 2020 showed the following information LOBO INC. Statement of Earnings For the Year Ended December 31, 2020 Net sales 51.560,000 LONO INC. Statement of Earnings For the Year Ended December 1, 2020 Net als Cost of sales Gross profit Operatie, cluding depreciation of 500,000 Interestepense Gain on sale of land Earnings dow) before income tax Income tax recovery Net rings Cless) 51.360,000 025000) 635.000 (664.000) (8000) 35.000 (12.000) 4000 Additional information: a) The tand that was sold during the year had an original cost of $12.500. b) Equipment was acquired in 2020, and no disposals were made during the yeat. Required: 1. Prepare, in good form, the grotating activities section of the statement of cash flows for the year ended December 31, 2020. Use the indirect method and show all relevant calculations. Do NOT prepare a complete statement of cash flows (6 marks) 2. Calculate the amount of cash payments to suppliers of merchandise. The accounts payable relate only to purchases of merchandise for sale (3 marks) 3. Prepare the investing activities section of the statement of cash flows for the year 2020. (4 marks)