Headland Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Headland as of May 31, 2020, are as follows. The company is preparing its statement of cash flows. HEADLAND COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2020 2019 Current assets Cash $28,200 $20.000 Accounts receivable 75,600 57,900 Inventory 218,600 250,900 Prepaid expenses 9,000 7,000 Total current assets 331,400 335,800 Plant assets Plant assets 601,600 505,500 150,600 125,600 Less: Accumulated depreciation-plant assets Net plant assets 451,000 379,900 Total assets $782,400 $715,700 Current liabilities Accounts payable $123,200 $115,300 46,800 72,600 Salaries and wages payable Interest payable 27,100 24,700 Total current liabilities 197,100 212,600 Long-term debt Bonds payable 70,000 100,000 Total liabilities 267,100 312,600 Stockholders' equity Common stock, $10 par 370,000 280,000 Retained earnings 145,300 123,100 Total stockholders' equity 515,300 403,100 Total liabilities and stockholders' equity $782,400 $715,700 HEADLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 Sales revenue Cost of goods sold $1,243,300 715,000 Gross profit 528,300 Expenses Salaries and wages expense 253,500 75,400 Interest expense Depreciation expense 25,000 Other expenses 8,100 Total expenses 362,000 Operating income 166,300 Income tax expense 42,600 Net income $123,700 The following is additional information concerning Headland's transactions during the year ended May 31, 2020. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. Plant assets costing $96,100 were purchased by paying $25,100 in cash and issuing 7,100 shares of stock. 3. 4. The other expenses" are related to prepaid items. All income taxes incurred during the year were paid during the year. 5. 6. In order to supplement its cash, Headland issued 1,900 shares of common stock at par value. 7. Cash dividends of $101,500 were declared and paid at the end of the fiscal year. Prepare a statement of cash flows for Headland Company for the year ended May 31, 2020, using the direct method. IA reconciliation of net income to net cash provided is not required) Show amounts in the investing and financing sections that decrease cash flow with either a-signeg.-15,000 or in parenthesiseg (15,000.) HEADLAND COMPANY Statement of Cash Flows (Partial) Cash payments: S > > > S >