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Below are the financial statements of Hope Company: Hope Company Comparative Balance Sheet December 31, 2020 (in pesos) Assets Cash Accounts receivable Merchandise inventories Property,
Below are the financial statements of Hope Company: Hope Company Comparative Balance Sheet December 31, 2020 (in pesos) Assets Cash Accounts receivable Merchandise inventories Property, plant & equipment Less: Accumulated dep. Total 2020 26,000 28,000 38,000 2019 33,000 14,000 25,000 70,000 (22,000) 78,000 (24,000) 48,000 140.000 54,000 126.000 Liabilities and Stockholder's equity Accounts payable Taxes payable Loans payable Ben Chan, Capital Total 31,000 26,000 20,000 63,000 140.000 43,000 20,000 10,000 53,000 126.000 Hope Company Income Statement For the Year Ended December 31, 2020 (in pesos) 286,000 194,000 92,000 Sales Cost of goods sold Gross profit Selling expenses (including P8,000 depreciation) Administrative expenses Income from operations Interest expense Net Income 28,000 9,000 37,000 55,000 7,000 48.000 Additional data: 1. Owner's drawing amounted to B38,000. 2. During the year equipment was sold for 10,000 cash. This equipment cost E15,000 originally and had an accumulated depreciation of 10,000 at the time of sale. The gain of B5,000 is included in the sales revenue. 3. All sales and purchases are on account. Required: a. Prepare a statement of cash flows using the indirect method for 2020. b. Was there enough cash generated by operating activities
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