1. A simplified balance sheet for Galaxy Cafe Inc. contain the following amounts at the end of 2019 and 2020.

Galaxy Cafe Inc. Balance Sheet As at August 31
	2020	2019
Assets
Current Assets
Cash	$6,000	$9,300
Accounts Receivable	$19,300	$8,600
Prepaid Rent	$2,200	$1,700
Food & Beverage Inventory	$31,500	$19,600
Total Current Assets	$59,000	$39,200
Long-Term Assets
Equipment	$185,000	$163,000
Accumulated Depreciation	$-27,000	$-16,200
Total Long-Term Assets	$158,000	$146,800
Total Assets	$217,000	$186,000
Liabilities
Current Liabilities	$23,100	$23,100
Long-Term Liabilities	$28,000	$44,000
Total Liabilities	$51,100	$67,100
Shareholders' Equity
Common Shares	$90,000	$69,000
Retained Earnings	$75,900	$49,900
Total Shareholders' Equity	$165,900	$118,900
Total Liabilities and Equity	$217,000	$186,000

Assume current liabilities include only items from operations (e.g., accounts payable, taxes payable). Long-term liabilities include items from financing (e.g. bonds and other long-term liabilities). Note that the company did not sell any equipment and did not borrow any additional long-term liabilities throughout the year.

Prepare the cash flow statement for 2020 using the indirect method. Assume no dividends were declared or paid in 2020.

Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.

Galaxy Cafe Inc. Cash Flow Statement For the Year Ended August 31, 2020
Cash Flow from Operations
Net Income
Adjustments for Non-Cash Items
Depreciation Expense	Answer
Change in Current Assets and Current Liabilities
Increase in Accounts Receivable	Answer
Increase in Prepaid Rent	Answer
Increase in Food & Beverage Inventory	Answer
Net Cash Provided (Used) by Operating Activities		Answer
Cash Flow from Investing Activities
Purchase of Equipment	Answer
Net Cash Provided (Used) by Investing Activities		Answer
Cash Flow from Financing Activities
Issuance of Common Shares	Answer
Repayment of Long-Term Liabilities	Answer
Net Cash Provided (Used) by Financing Activities		Answer
Net Increase (Decrease) in Cash		Answer
Cash at the Beginning of the Year		Answer
Cash at the End of the Year		Answer

2.