Additional information: 1. Dividends in the amount of $20,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. Equipment that had a cost of $25,000 and was 20% depreciated was sold during 2020. Instructions Prepare a statement of cash flows using the Indirect method. Problem II: Metal Corporation reports pretax financial income of S260,000 for 2020. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax retum by S65,000. 2. Depreciation on the tax return is greater than depreciation on the income statement by $40,000. 3. Interest on an investment in a municipal bond of $6,500 on the income statement Metal's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Instructions (a) Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 (c) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (d) Compute the effective income tax rate for 2020. Additional information: 1. Dividends in the amount of $20,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. Equipment that had a cost of $25,000 and was 20% depreciated was sold during 2020. Instructions Prepare a statement of cash flows using the Indirect method. Problem II: Metal Corporation reports pretax financial income of S260,000 for 2020. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax retum by S65,000. 2. Depreciation on the tax return is greater than depreciation on the income statement by $40,000. 3. Interest on an investment in a municipal bond of $6,500 on the income statement Metal's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Instructions (a) Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 (c) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (d) Compute the effective income tax rate for 2020