B 1 Problem 1: 10 marks (25 minutes) 2 3 The following is a partial balance sheet for Sumac Inc. For 2020 and 2021 4 5 2021 2020 6 Cash 120 000 87 000 7 Receivables 82 000 115 000 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 12 Interest payable 6238 81000 7586 13 Unearned revenue 15500 12 100 14 Retained earnings 43 000 22 000 15 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 22 23 24 26 27 25 The income statement for 2021 is as follows. Sales (all on credit) 980 000 28 Cost of goods sold 29 Gross profit (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 37 Interest expense 38 Gain on sale of PPE Net income before taxes 39 Income tax expense 40 41 Net income 34 000 (56 000) 80000 (48 000) 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 40