6 2020 2019 7 8 9 10 Balance Sheet at December 31 Cash Accounts Receivable Inventory -3,100 2,800 6,700 2,200 2,100 2,600 11 Property, plant and equipment 17,600 10,800 12 Less: Accumulated depreciation 6,000 -2,400 13 Patent, net 4,000 0 14 Goodwill, net 2,800 4,000 15 24,100 20,000 16 17 Accounts payable 500 3,000 18 Wages payable 4,000 2,000 19 Long-term notes payable 8,000 6,000 20 Contributed capital 10,200 7,000 21 Retained earnings 1,400 2,000 22 24,100 20,000 23 24 Income Statement for 2020 25 Sales 26 Cost of Goods Sold 27 Depreciation expense 28 Impairment loss - Goodwill 29 Wages expense 30 Other expenses 31 Net Income 60,000 -34,800 -3,600 -1,200 -7,200 -9,000 4,200 32 33 Additional information conceming transactions and events during 2020: 34 1 Bought truck for cash $ 4,800 35 2 Acquired patent for cash $ 4,000 on Dec 31, 2020 36 3 Paid cash dividends of $ 4,800 37 4 Purchased machinery by signing a $ 2,000 long-term note payable. 38 5 Issued new shares for $ 3,200 cash 39 40 41 42 43 Instruction: (15 Marks] Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Statement of Cash Flows 44 Cash flows from operating activities 45 Net incone 4,200.00 46 Adjustments to reconcilie net income to net cash provided by operating activity 47 Depreciation 3,600.00 48 Changes in current asset and curret liability 49 50 Inventories 51 accounts receivable Accounts payable 6,700.00 2,100.00 500.00 52 53 54 55 INSTRUCTION Part 1 Part 2 Part 3 Part 4 Ready + M B [15 Marks] Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Statement of Cash Flows D E F G H M Cash flows from operating activities Net incone 4,200.00 Adjustments to reconcile net income to net cash provided by operating activity: 7 Depreciation 3,600.00 8 Changes in current asset and curret liability 9 0 inventories 1 accounts receivable Accounts payable 6,700.00 2,100.00 500.00 2 3 4 5 6 Cash flows from operating activities 1,500.00 7 8 Cash flows from investing activities 9 Purchase of equipment 0 Purchase of intangible and other assets 2,000.00 8,800.00 1 2 Cash flows from Investing activities- 10,800.00 3 4 Cash flows from financing activities 65 56 Additional borrowings of long-term debt proceeds from share insurance 2,000.00 3,200.00 57 58 Cash flows from financing activities 5,200.00 69 70 Net decrease in cash and cash equivalents 71 72 73 74 Supplemental Disclosures for non-cash investing and financing activities (if any) 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 INSTRUCTION Part 1 +-+-+