HLT CO. Income Statement For the year ended 31, December, 2020 Sales Cost of goods sold 124,000 Other expense 90,000 Depreciation expense 19,000 315,000 (233,000) 82,000 Other gain (loss) Loss of sale of equipment Net income (2,000) 80,000 Additional information: 1. Equipment costing $15,000 with accumulated depreciation of $11,000 is sold for cash 2. New equipment of $30,000 is purchased by cash 3. Accumulated Depreciation is affected by depreciation expense and the sale of equipment 4. Issue additional stocks for $50.000 cash 5. Cash dividends declared and paid are $30,000 Question 1: (3 marks) Prepare Statement of Cash Flows for the year 2020 - under Indirect Method HLT Co. Comparative Balance Sheet For the year ended 31, December, 2020 2020 2019 Assets Cash $156,500 $80,500 Account receivable 42,000 37,000 Inventory 57,550 50,000 Total current assets 255,550 167,500 Plant Assets 70,000 55,000 Accumulated depreciation - equip (40,000) (32,000) Total asets 286.050 190,500 22,000 5,000 15,850 45,900 Liabilities and Equity Account payable Salary payable Income tax payable Total current liabilities Equity Commond stock Retained earning Total liabilities and equity 25,000 10,000 12,300 50,350 153,000 90,200 286,050 103,000 40,200 190,500