3 The following is a partial balance sheet for Sumac Inc. For 2020 and 2021 4 5 2021 2020 60 7 Cash Receivables 120,000 87,000 82,000 115,000 00 8 Inventory 212,000 158,000 9 Property, Plant and Equipment (PPE 720,000 774,000 10 Accumulated deprciation 490,000 11 Accounts payable 78,000 81,000 12 Interest payable 6,238 7,586 13 15,500 12,100 14 43,000 22,000 15 Unearned revenue Retained earnings 16 Additional information - 17 18 1. The Accumulated Depreciation account has been credited for the depreciation expense for the period. 19 One asset was disposed of during the year. The original cost of the asset sold was $250,000. 20 The asset had a net book value of $50,000 on the date of sale. 21 26 27 22 23 24 25 The income statement for 2021 is as follows. Sales (all on credit) 28 Cost of goods sold 29 Gross profit 980,000 (621,000) 359,000 30 31 Operating expenses 32 Depreciation expense (68,000) 33 Other operating expenses (189,000) 34 Operating income 102,000 35 36 Gain on sale of PPE 34,000 37 Interest expense (56,000) 38 Net income before taxes 80,000 39 Income tax expense (48,000) 40 41 Net income 32,000 42 Required: Calculate the following sections of the the Statement of Cash flow: 43 a) Cash flow from Operations using the indirect method 44 b) Cash flow form Investing 45 46 47