Ise the income statement of McKnight Consulting Ltd, plus these additional data during fiscal year 2020 (Click the icon to view the Income Statement.) (Click the icon to view the additional data.) Required 1. Prepare McKnight Consulting Ltd's cash flow statement for the year ended September 30, 2020, using the indirect method. 2. Evaluate McKnight Consulting Ltd's cash flows for the year. In your evaluation, mention all three categories of cash flows, and give the reason for your evaluation For the Year Ended September 30, 2020 Cash flows from operating activities .Net income Add (subtract) items that affect net income and cash flow differently Amortization expense Decrease in accounts receivable Increase in office supplies Increase in accounts payable Decrease in accrued liabilities Net cash inflow from operating activities rachflare feminine Enter any number in the edit fields and then continue to the next question Increase in accounts payable Decrease in accrued liabilities Net cash inflow from operating activities Cash flows from investing activities Acquisition of computer equipment Cash receipt from sale of land Net cash outflow from investing activities Cash flows from financing activities Cash receipt from issuance of common shares Payment of long-term note payable Dividends paid Net cash outlow from financing activities Net increase in cash Cash balance at beginning of 2020 Cash balance at end of 2020 Non cash investing and financing activities Acquisition of equipment by single payable Requirement 2. Evaluate McKnight Consulting Ltd's cash flows for the year in your evaluation mention all three categories of cash fows, and give the reason for your evaluation The cash flow from and provided funds to acquire the computer equipment, which is found under The company strong and has little problem in acquiring by way of notes and common shares which is found in the section of the cash flow statement Enter any number in the cold and then continue to the next question Income Statement For the Year Ended September 30 2020 Revenues $ 566,000 Consulting revenue Expenses Salaries expense $ 298.000 Amortization expense 76.000 Rent expense 18,000 Office supplies expense 30 000 Insurance expense 5.500 Interest expense 4 500 50.000 482000 Income tax expense $ 84 000 Net income Additional data: a. Acquisition of computer equipment was $248,000. Of this amount, $220,000 was paid in cash and $28,000 by signing a long-term note payable. McKnight Consulting Ltd. sold no computer equipment during fiscal year 2020. b. Cash received from sale of land, $26.000. c. Cash receipts from issuance of common shares, $96.000. d. Payment of long-term note payable, $40,000. e. Payment of dividends, $132.000. f. Change in cash balance, $?. g. From the comparative balance sheet at September 30: McKnight Consulting Ltd. Balance Sheet (partial) September 30, 2020 and 2019 2020 2019 Current assets Current assets Cash $ 60.000||$ 42.000 Accounts receivable 20.000 150.000 20.000 15.000 Office supplies Prepaid expenses 14.000 14.000 Current liabilities Accounts payable $ 84,000||$ 72.000 Accrued liabilities 40,000 49.000
