Case 4 (25 Points) - LO6 Comparative statement of financial position accounts of Kopi Co. presented below: Kopi Co. Comparative Statement of Financial Position Accounts As of December 31, 2019 and 2018 Dec 31, 2019 Dec 31, 2018 Debit Cash 168,000 135,000 Accounts Receivable 282,000 240,000 Inventory 120,000 96,000 Equity Investment (non-trading) Machinery Buildings Land 89,000 120,000 270,000 30,000 1,079.000 154,000 75,000 225,000 30,000 955,000 Credit Allowance for Doubtful Accounts Accm. Depreciation - Machinery Accm. Depreciation - Buildings Accounts Payable Accrued Payable Long-Term Notes Payable Share Capital - Ordinary, no par Retained Earnings 9,000 22,500 54,000 140,000 13,500 84,000 600,000 156,000 1,079.000 6,000 9,000 36,000 99,000 10,500 124,000 500,000 170,500 955,000 Additional data (ignoring taxes): 1. Sales revenue for the year was $2,160,000, COGS was $1,520,000, operating expense was $481,800 (includes depreciation and bad debt expense), net income was $170,000. 2. Bad debt expense for the year was $21,600. 3. The cash dividend declared in 2019 was fully paid in 2019. 4. A 20% share dividend was declared during the year. 5. Equity investments that cost $100,000 were sold during the year for $115,000. 6. Machinery that cost $15,000, on which $3,000 of depreciation had accumulated, was sold for $8,800. Required: Prepare statement of cash flows using direct method and explain the result! 1