2 of 24 Question : Statement of Cash Flows (13 marks: 23 minutes) The following unclassified statement of financial position relates to Lobo Inc, as at December 31: LOBO INC Comparative Statement of Financial Position December 31 2020 2019 Assets Cashback $111.000 $120.000 Accounts receivable, 230.000 303.000 Inver, at cost 190,000 160.000 Prepaid expenses 34,700 Land 60.000 72.500 Plant and equipment, net 325.000 253.500 Total assets $950.700 $900.000 Liabilities and Shareholders' Equity Accounts payable $100,000 $ 40.000 Accrued libilities 21.700 30.000 Dividends payable 38.000 0 Bonds payable, net 103.000 105,000 Cammon shares 600,000 600,000 Retained earings 88000 134000 Total liabilities and shareholders' equity $950.700 5909,000 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 SI 560,000 Cost of sales (925,000) Gross profit 635,000 Operating experises, including depreciation of $60,000 (664,000) Interest expense (8,000) Gain on sale of land 25,000 Earnings (loss) before income tax (12,000) Income tax recovery 4,000 Net earnings (loss) (8000) 2:22:53 Lobos condensed statement of carings for the year ended December 31, 2020 showed the following information LOBO INC Statement of Earnings For the Year Ended December 31, 2020 Na 51.560,000 Cast of sales (925.000 Crew profit 635.000 Operatiu pensa, achadon deprecation of $60.000 (664.000) Intereste (8.000 Gamon sale often 25.000 Trines (los) before come tax (12.000) Incarcovery 4.000 Nel camins (los) $18.00m Additional information: a) The land 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 year, Required: 1. Prepare, in good form, the operating activitles 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)