CHAPTER 16 Reporting and Analyzing Cash Flows ALTERNATE d. All debits to accounts payable result from payments for merchandise. e. All other expenses are cash expenses. Problem 16-11A Preparing the statement of cash flows (indirect method) LO5, 6 CHECK FIGURE: Net cash outflow from investing activities - $8,000 Sunny Technologies Inc. began operations on January 1, 2019. Its post-closing trial balance at December 2019, and 2020 is shown below along with some other information. ZNATE PROBLEMS 6-18 Preparing the statement GURE: Net cash Wow from operatin plies Inc., a software retailer. Tee Problem 16-18 CHECK FIGURE MED Supplies in ailable: Sunny Technologies Inc income Statement For Year Ended December 31, 2020 Sunny Technologies Inc Post-Closing Trial Balance MED Supplies inc. Income Statement For Year Ended December 31, 2020 627,200 483.200 144,000 Sales Cost of goods sold Gross profit Operating expenses: Revenues Sales Cost of goods sold... Gross proti Expenses and other Other expenses.... .. Depreciation expense.. Total operating expenses...... Operating prot loss Loss on sale of plant assets... Pranit L05). December 31 2020 2019 $ 62.400 $ 76.800 41.600 30,400 27.200 35.200 230.400 190 400 64.000 52,800 49,600 2.400 11.2006,400 97.600 40,000 49,600 8,000 89,600 163,200 Account Cash. Receivables Merchandise inwentory.... Property, plant, and equipment..... Accumulated depreciation. Accounts payable Accrued liabities. Notes payable Common shares. Retained earnings. 155.200 25,600 $29.648 180.800 (36,BDO) 20.800 (57.600 Depreciation expense. Other expenses. Total operating expenses... Profit from operations..... Income taxes......... Profit... Other information regarding Sunny and its activities during 2020: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. Plant assets were sold during the year. 4. Plant assets worth $99.200 were purchased during the year by paying cash of $32,000 and issuing a long- term note payable for the balance. Required Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2020 Analysis Component: a. The Cash account balance for Sunny Technologies Inc. decreased during 2020. Is this necessarily an unfavourable situation? Explain why or why not. b. Explain the causes of change in Sunny's cash situation during 2020 Additional information regarding 1. Equipment was purchased to 2. Issued 3.360 common share 3. Declared and paid $147 Required Prepare a statemen ing activities according to the Analysis Component: The plain what caused this chan Dronaring