(ILO 1-5) (20 points) Problem 2. Please, prepare for ABC Inc. Cash Flow Statement based on the below given information by direct method. Income Statement Net sales 3,200,000 Interest revenue 40,000 Gain on sale of marketable securities 34,000 Total revenue 3,274,000 Costs and expenses COGS 1,620,000 Operating expenses (including depreciation expense of 150 000) 1,240,000 Income tax expense 100,000 Interest expense 42,000 Loss on sale of PPE 12,000 Total expenses 3,014,000 Net income 260,000 Additional information: 1. Accounts receivable increased by 60 000 Accrued interest receivable decreased by 2000 2. 4. Short-term prepayments of operating expenses increased by 6000, accrued liabilities decreased by 8000. 3. Inventory decreased by 60 000, accounts payble decreased by 16 000. 5. Accrued interest payable increased by 4000. 6. Accrued income taxes payble decrased by 14 000. 7. Cash and cash equivalents for the beginning of year is 244 000 and year end is 164 00. 8. The following information is given: Credit entries Debit entries Accounts 38 000 Marketable securities Notes receivable (cash loans) PPE (AD is 36 000) Note payable Capital stock Retained Earnings (dividends payment) 60 000 28 000 44 000 36 000 500 000 82 000 92 000 180 000 260 000 120 000