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Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow: Marine Corporation Income Statement For the Year Ended December 31, 2019 Sales $ 4.500.000 Less: Cost of Goods Sold 3,200.000 Gross Profit 1.300.000 Less: Selling. General & Administrative Expenses 260.000 Operating profit 1.040.000 Less: Depreciation Expense 150.000 Earnings Before Interest and Taxes 890,000 Less: Interest Expense 90,000 Earnings Before Taxes 800,000 Less: Taxes (50%) 400,000 Net Income $ 400.000 Marine Corporation Balance Sheet Assets 2018 2019 Cash $40,000 Marketable Securities 185,000 170,000 Accounts Receivable 240,000 220.000 Inventories 210,000 275.000 Investments 70,000 55.000 Total current assets $700,000 $760,000 Plant and Equipment 1.300,000 1.550.000 Less Accumulated Amortization 450,000 600.000 Net plant and Equipment S850,000 $950,000 Total Assets 1.610,000 1.710,000 SI5.000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $95.000 $75,000 Notes payable 80.000 20,000 Accrued Expenses 30.000 5,000 Income Taxes Payable 5.000 10,000 Bonds Payable (2016) 800.000 900,000 Common Stock (100,000 shares) 200.000 200,000 Retained Earnings 400.000 500,000 Total Liabilities and Shareholders' Equity 5.1.610.000 1.710.000 Required: Prepare a Statement of Cash Flows for the year ended December 31, 2019 using the Indirect Method showing the operating, investing and financial cashflows up to the net change in cash. 2