Given is the Income Statement for the year ended December 31, 2019, Statement of Retained Earnings for the year ended December 31, 2019 and Comparative Balance Sheets for 2018 and 2019 of Hot Cross Bun Corporation: Hot Cross Bun Corporation Income statement Year Ended December 31, 2019 Sales Cost of goods sold 53,400,000 1.950,000 1,450,000 600,000 200.000 Gross profits Selling and administrative expense Amortization expense Operating Income Interest expense Earnings before taxes Taxes 650,000 50.000 600,000 400,000 200,000 Earnings after takes Preferred stock dividends Earnings available to common shareholders 20,000 $180,000 Shares outstanding Earnings per share 100,000 $1.80 Statement of Retained Earnings For the Year Ended December 31, 2019 Retained earnings, balance, January 1, 2019 Add: Earnings available to common shareholders, 2019 Deductt Cash dividends declared and paid in 2019 $869,000 180,000 100,000 Retained earnings, balance, December 31, 2019 $949,000 Comparative Balance Sheets For 2819 and 2818 December 31, 2019 December 31, 2018 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses $120,000 500,000 620,000 30,000 $39,000 490,000 600,000 61,000 1,270,000 80,000 1,190,000 90,000 Total current assets Investments (long-term securities) Plant and equipment Less: Accumulated depreciation Net plant and equipment 2,400,000 1,120,000 2,000,000 920,000 1,280,000 1,880,000 Total assets $2,630,000 $2,360,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Accrued expenses Total current liabilities Long-term liabilities: Bonds payable, 20xY $400,000 500,000 41,000 5251,000 500,000 50,000 801, 800 941,000 150,000 100,000 1,091,000 991,800 Total liabilities Shareholders' equity: Preferred stock Common stock Retained earnings Total shareholders' equity Total llabilities and shareholders' equity 90,080 500,000 949,000 ge, 080 500,000 869,000 1,539,000 1,459,000 $2,630,000 $2,360,000 Prepare a statement of cash flows for the Hot Cross Bun Corporation (Amounts to be deducted should be indica sign. Omit S sign in your response.) Hot Cross Bun CORPORATION Statement of Cash Flows For the Year Ended December 31, 2019 Operating Activities: Net income Add items not requiring an outlay of cash: Amortization expense Cash flow from operations Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued expenses V V v Net Change in non-cash working capital Cash provided by operating activities Investing activities: Decrease in investments Increase in plant and equipment Cash used in Investing activities Financing activities Increase in bonds payable Preferred stock dividends paid Common stock dividends paid 3 -1 Cash used in financing activities Not increase in rach Amortization expense Cash flow from operations Increase in accounts receivable v Increase in inventory v Decrease in prepaid expenses Increase in accounts payable Decrease in accrued expenses V v V Net Change in non-cash working capital Cash provided by operating activities Investing activities: Decrease in investments Increase in plant and equipment Cash used in Investing activities Financing activities: Increase in bonds payable Preferred stock dividends paid Common stock dividends paid V Cash used in financing activities Net Increase in cash Cash, beginning of year Cash, end of year