heyr 31, For the Year End AL 2020 Cost of goods sold Depreciation expense, building Depreciation expense, equipment Amortization expense patents Total avating expenses Other Income expen $10.000 126 800) income before income taxes Income taxes expense Net Income Morales Company Comparative Balance Sheets August 31, 2020 and 2019 2020 Assets: Cash Accounts receivable (net) Inventory Prepaid rent Land $183,120 204,800 225,780 $5A 720 150 880 275,780 40.000 Building 50,000 274.000 (30.000) 68.000 (29,000) 8.000 $952,760 68.000 (48,000) 12.000 $553,360 73,500 Accumulated depreciation, building Equipment Accumulated depreciation, equipment Patents Total Asset Liabilities and Stockholders' Equity Accounts payable Notes payable (current) Income taxes payable Mortgage payable Common stock, $20 par value Additional paid-in capital Retained earnings Total liabilities and owners' equity 21,500 20,000 24,600 324,000 380,000 114.400 112,860 $952,760 300,000 74.400 80,860 $553,360 During 2020, Morales Company engaged in the below transactions: 1) Equipment that cost $27.000 with accumulated depreciation of $25,000 was sold at a gain of $10,600. 2) Funds borrowed by issuing notes payable, $50,000; notes payable repaid, $30,000 3) Equipment purchases, $25,000. 4) Paid cash dividends, $18,000. 5) Purchase of a patent, $3,000. 6) Land and building purchased for $324,000 by signing a mortgage for the total cost. 7) Sold 3,000 shares of $20 par value common stock for a total of $100,000 Required: Using the indirect method, prepare a statement of cash flows for Morales Company. Include a supporting schedule of noncash investing and financing transactions. many come statement for the year ended Aug cechts as of ANS. ZODZ010 31, 2000, and its compart Pe Year End A 1 .2020 Cost of goods sold Depreciation expense, building Depreciation pense, equipment Amortization expense patients Totalcating expenses Other Income expenses) $10.000 (26 800) income before income taxes Income taxes expense Net Income Morales Company Comparative Balance Sheets August 31, 2020 and 2019 2020 $183,120 204 800 225.780 $54.720 150 880 275,780 40.000 Assets: Cash Accounts receivable (net) Inventory Prepaid rent Land Building Accumulated depreciation, building Equipment Accumulated depreciation, equipment Patents Total Asset Liabilities and Stockholders' Equity Accounts payable Notes payable (current) Income taxes payable Mortgage payable Common stock, $20 par value Additional paid-in capital Retained earnings Total liabilities and owners' equity 50,000 274.000 (30.000) 68.000 (29,000) 8.000 $952,760 88.000 (48,000) 12,000 $553,360 73,500 21,500 20,000 24.600 324,000 360,000 114.400 112,860 $952,760 300,000 74.400 80,860 $553,360 During 2020, Morales Company engaged in the below transactions: 1) Equipment that cost $27.000 with accumulated depreciation of $25,000 was sold at a gain of $10,600. 2) Funds borrowed by issuing notes payable, $50,000; notes payable repaid, 530,000 3) Equipment purchases, $25,000. 4) Paid cash dividends, $18,000. 5) Purchase of a patent, $3,000. 6) Land and building purchased for $324,000 by signing a mortgage for the total cost 7) Sold 3,000 shares of $20 par value common stock for a total of $100,000 Required: Using the indirect method, prepare a statement of cash flows for Morales Company. Include a supporting schedule of noncash investing and financing transactions