Beginning of Year Cash Accounts Receivable Interest Receivable Inventory Short-term Prepayments Accounts Payable (for Merchandise Interest Payable Accrued operating expenses payable Accrued Income taxes Payable Net sale Interest Revenue Cost of goods sold Operating expenses (Including depreciation of $65,000) Interest expense Income taxes expense End of Year ???????? 900,000 80,000 170,000 75,000 95,000 82,000 50,800 47,500 930,000 88,200 580,700 670,300 800,000 100,000 145,000 105,000 120,000 48,000 55,800 44,200 195,400 35,300 77,500 March 2 Issued capital stock in exchange for $630,000 with cash receipt of $200,000.00 and $430,000 was appraised for the Building given to the company in exchange for ownership in the company. March 8 Purchased office equipment on account for $145,400 June 11 Declared and paid cash Dividend of 45,000.00 Dec 23 Paid $100,00.00 for the office equipment Dec 31 The company sold an old equipment for $130,600.00 in cash. The equipment was purchased on 12/31/2016 for $530,000 with a useful life of 6 years and a residual value of $50,000.00. Mouthful uses the straight line depreciation method. Question: 1. Use the information above to prepare the statement of Cash flow for the year 2020 using the direct method. 2. Compute the gain or loss on sales of the equipment