Guys, can you explain this questions with detailed?

SESA Corp.

Income Statement ($)

For the Year Ending on December 31, 2020

Sales .............................................................. 3.250.000

Sales Returns ............................................................. (500.000)

Sales Discounts ............................................................. (150.000)

Net Sales ............................................................ 2.600.000

COGS .......................................................... (1.300.000)

Gross Profit .............................................................. 1.300.000

Operating Expenses .............................................................. (300.000)

Operating Profit .............................................................. 1.000.000

Income from Ordinary Activities................................................ 108.000

Gain on Sale of Marketable Securities 3,000

Dividends from Affiliates 55,000

Interest Revenue 40.000

Gain on Sale of Prop. Plant & Equip 10.000

Earnings Before Interest and Taxes..................................... 1.108.000

Financing Expense (Interest Expense)........................................ (70.000)

Earnings Before Tax............................................................. 1.038.000

Tax Expense (-)...................................................................... (110.000)

Net Income.............................................................................. 928.000

Some balance sheet items for the years 2019 and 2020 are presented in the table below:

2019 2020 .

Accounts Receivable....................................... 440.000............... 450.000

Inventories..................................................... 550.000............... 575.000

Interest Receivable............................................. 3.000.................. 7.000

Prepaid Expenses............................................... 8.000.................. 9.000

Accounts Payable........................................... 410.000............... 415.000

Accrued Expenses............................................ 90.000................. 86.000

Interest Payable.................................................. 8.000................. 20.000

Taxes Payable.................................................. 22.000................. 20.000

Additional Information:

$55,000 of dividends from affiliates is received in cash during the period.

The machine, which the company sold, had a carrying value of $52,000.

$49,000 of operating expenses belong to depreciation.

Notes Receivable account is debited by $32,000 and credited by $20,000 during the period.

The company received $82,000 from bank credits and paid $61,000 as principal payment for bank credits.

The company issued 10,000 shares with $1.00/share par (nominal) value and sold them for $3.20 each.

Total amount of dividends declared and paid during the year is $5,000.

Required: Please prepare the CFs from Operating Activities part of Statement of Cash Flows for ABC Corp. for the year 2020.

2. The information related to the inventory transactions of a company is presented below:

December 1 Beginning Inventory 10 units at $110 each

December 8 Purchased 6 units at $120 each

December 10 Purchased 6 units at $130 each

December 14 Sold 8 units for $160 each

December 20 Sold 2 units for $170 each

December 24 Purchased 4 units at $135 each

* The physical count of inventory shows that the company has 14 units remaining at the warehouse.

Please calculate the COGS and Ending Inventory account balances for the company, assuming that the company applies;

Periodic Inventory System & FIFO Method

Perpetual Inventory System & Weighted Average Method