Case 2. Cash Flow Preparation Below is the analysis of the Statement of Cash flow of Carpet Company. (10 marks) Dec. 31, Prior Year Analysis of Changes Debit Credit Dec. 31, Current Balance sheet--debits Cash Accounts receivable $100,000 $105,000 $80,000 (b) 10,000.00 $70,000 Inventory Equipment Total Debits Balance sheet--credits Accum, depr-Equip. $150,000 (c) $40,000 $190,000 $150,000 (g) 65,000 $215,000 $480,000 $580,000 $50,000 G (f) 10,000 $60,000 Accounts payable $15,000 Income taxes payable $15,000 50 (d) 5,000 $10,000 5,000 $10,000 Common stock, $5 par value $250,000 (h) 15,000 $265,000 Paid-in capital in excess of par $20,000 (h) 45,000 $65,000 value, common stock Retained earnings Total Credits Statement of cash flows Operating activities Net income $130,000 20,000 (a) 60,000 $170,000 $480,000 $580,000 (a) 60,000 Decrease in accounts receivable (b) 10,000 Increase in inventory (c) 40,000 Decrease in accounts payable (d) 3,000 Decrease in income taxes payable (e) 5,000 Depreciation expense (f) 10,000 Investing activities Payment for equipment (g) 65,000 Financing activities Issued common stock for cash (h) 60,000 Paid cash dividends $275,000 20,000 $275,000 The analysis of changes columns with letters correspond to the following list of transactions and events. a. Net income was 60,000 c. Inventory increased b. Accounts receivable decreased d. Accounts payable decreased (10,000) 40,000 (5,000) e. Income taxes payable decreased f. Depreciation expense was g. Purchased equipment for cash h. Issued 3,000 shares at $20 cash per share (5,000) 10,000 65,000 Common stock, $5 par value x 3,000 shares 15,000 | Paid-in capital in excess of par value, common stock | 45,000 . Declared and paid cash dividends. 20,000 Requirement. Using the spreadsheet analysis of Cash Flow Statement, prepare Statement of Cash Flow. Use the template provided to you. (1 mark each x10-10 marks)