Exercise 5-10 During the next fiscal year ended June 30, 2020, Alabama Company will be making substantial changes. The company plans to eliminate an investment with Chicago Company, while they will get ready for growth in sales in other product lines. below with a comparative balance sheet on June 30, 2020 and June 30, 2019. An income statement for the fiscal year ended June 30, 2020 is given Alabama Company Income Statement For the Year Ended June 30, 2020 Net sales Cost of sales Operating expenses Interest expense Loss on sale of investment in associates Gain on sale of equipment Unrealized holding loss on trading securities Income tax Total Net income Assets P3,587,000 P2,014,500 538,500 184,000 40,000 (96,000) 100,000 337,500 P3,118,500 P 468,500 Alabama Company Balance Sheets June 30, 2020 June 30, 2019 Current assets: Cash Accounts receivable Trading securities(market) Inventories Prepaid expenses Totals Investment in Associates(cost) Land, plant & equipment: Land Buildings (net) Equipment (net) Totals Total Assets P298,000 P490,250 1,293,750 486,500 300,000 400,000 459,000 767,750 54,500 46,500 P2,405,250 P 0 P2,191,000 P 320.000 P454,000 P163,000 645,000 707,500 779,750 795,750 P1,878,750 P1,666,250 P4,284,000 P4,177,250 Liabilities & Equity Current liabilities: June 30, 2020 June 30, 2019 Accounts payable Bank loans payable P315,250 Accrued operating expenses 575,000 105,500 P287,000 500,000 96,500 Totals P995,750 P883,500 Long-term notes payable P1,050,000 P2,125,000 Equity: Common stock, P10 par value P749,500 P335,000 Additional paid in capital 596,500 120,000 Retained earnings 892,250 713,750 Total P2,238,250 P1,168,750 Total liabilities & equity P4,284,000 P4,177,250 Additional Information: 1. Depreciation of P84,000 is included in cost of sales. 2. Depreciation of P66,000 is included in operating expenses. 3. No additional buildings will be purchased, and no buildings will be retired. 4. Stock dividends in the amount of P130,000 will be transferred from retained earnings to common stock. 5. Land will be exchanged with capital stock valued at P186,000. 6. Long-term notes payable of P500,000 will be converted to common stock at the book value of the notes. 7. The equipment to be sold has a net book value of P185,000. 8. The only transactions affecting retained earnings will be those to close out the net income and to record the dividends declaration for the year. REQUIRED: 1. Prepare a forecast cash flow statement for the year ended June 30, 2020 2. Show supporting computations and T-accounts for many missing amounts.