Cambridge Business Publishers Chapter 5 Statement of Cash Flows and Financial Analysis Income Statement For Year Ended December 31, 2020 Sales revenue $320,000 Cost of goods sold 120,000 Depreciation expense. 40,000 Amortization of patent 9,000 Salaries and wages. 11,000 Remaining expenses (all cash) 38.000 Not income $102,000 Required Restate the statement of cash flow in correct form using proper titles and subtotals. Use the indirect method present cash flows from operating activities, and assume that cash at the beginning of the period was $28,000. Si at egg repetu was. Pro Inde Prep of C Com She Data Linda Ray, the president of GEI Corporation, requires a statement of cash flows for its annual report ending De- cember 31, 2020. The following balance sheet data are from GEI. 1. Cash account balances: December 31, 2019, $43.000; December 31, 2020, $18,000. 2. The net balance in Accounts Receivable decreased by $10,000 during the year from $60,000 to $50,000. The company had no short-term investments. 3. Inventory increased $9,000 from $71,000 to $80,000. 4. Accounts Payable increased $3,000 during the year from sh9,000 to $32,000. Income Tax Payable increased $4,000 during the year from $4,000 to $8,000. Salaries Payable decreased by $5,000 during the year from $9,000 to $4,000. There were no other current liabilities. 5. During December 2020, the company settled a $10,000 note payable (fully liquidating the outstanding bal- ance) by issuing shares of its own common stock with equal value. 6. Cash expenditures during 2020 were (a) payment of long-term debts, $64,000; (b) purchase of fixed assets, $74,000 (ending balance of $159,000); (c) payment of a cash dividend, $16,000; and (d) purchase of land as an investment, $25,000. 7. Sale and issuance of GEI common stock for $20,000 cash. The December 31, 2019, balance of Common Stock was $50,000 8. Issuance of a long-term mortgage note, $30,000 cash. 9. Balance of Accumulated Depreciation is $52,000 on December 31, 2020. 10. Retained Earnings on December 31, 2019, is $67,000. 11. Sold fixed assets; the following entry was made: Cash... 5,000 Accumulated Depreciation. 12,000 Fixed Assets... 15,000 Gain on Sale of Fixed Assets. 2,000 5.000 12.000 Cash..... Accumulated Depreciation.. Fixed Assets .... Gain on Sale of Fixed Assets Following is summary income statement data for GEI. 15,000 2,000 Sales revenue (net credit sales). Cost of goods sold.. Depreciation expense. Patent amortization Income tax expense Selling and administrative expenses Gain on sale of fixed assets. Net income $ 295,000 (140,000) (14,000) (1,000) (17,000) (42,000) 2,000 $ 83,000 "Net patent balance on December 31, 2020, is $8,000 Required Prepare comparative balance sheets as of December 31, 2019, and December 31, 2020. b. Prepare a statement of cash flows using the indirect method to present cash flows from operating activities