E7-20A. (Learning Objectives 4, 7: Reporting PPE; depreciation; and investing cash flows) Assume that in January 20X6, Great Eastern Bakery purchased a building, paying $171,000 cash and signing a $324,000 note payable. The bakery paid another $180,000 to remodel the building. Furniture and fixtures cost $162,000, and dishes and suppliesa current asset-were obtained for $30,600. Great Eastern Bakery is depreciating the building over 20 years by the straight-line method, with estimated residual value of $165,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated by the double-declining-balance method, with zero residual value. At the end of the first year, the bakery still has dishes and supplies worth $5,700. Show what the restaurant will report for supplies, PPE, and cash flows at the end of the first year on its: Income Statement Balance Sheet Statement of cash flows (investing only) Note: The purchase of dishes and supplies is an operating cash flow because supplies are a current asset.