4 (20 marks) The financial statements for Camellia Co. for year 2019 and 2020 are as follows: Comparative Statements of Financial Position Camellia Co. as of March 31 2020 2019 $ Non-current assets Equipment 300,000 250,000 Accumulated depreciation (135,000) (105,000) Debt investment (held-for collection) 80,000 245,000 Camellia Co. Income Statement for the Year ended March 31, 2020 Sales revenue Cost of goods sold Gross profit Gain on sale of debt investment $ 60,000 205,000 Loss on disposal of equipment Operating expenses Depreciation Net income before taxes Income tax expenses Net income S 390,000 (130,000) 260,000 2,000 (1,000) (94,000) (48,000) 119,000 (19,000) 100,000 Current assets Inventory Accounts receivable Cash 10,000 26,000 8,000 34,000 150,000 120,000 186,000 162,000 Total assets 431,000 367,000 Shareholders' equity Ordinary share capital 150,000 150,000 Retained earnings 193,000 343,000 98,000 248,000 Additional information: 1. Equipment with cost of $82,000 and accumulated depreciation of $18,000 was sold during the year. 2. Dividend was declared and paid during the year. 3. Debt investment of $12,000 was sold during the year. Required: (a) Using the indirect method, prepare a statement of cash flows for Camellia Co. for the year ended March 31, 2020 in good format. (16 marks) Non-current liabilities 10% Bond payable 50,000 80,000 (b) Compare and contrast the direct method and indirect method for reporting cash flows from operating activities. (4 marks) Current liabilities Accounts payable Income tax payable 16,000 26,000 22,000 13,000 38,000 39,000 Total equity and liabilities 431,000 367,000 -END