Management Accounting Assignment-1 (Due 11:59 pm on Monday, Jan 17) 1. The balance sheet and income statement for Demi's Catering Inc. are presented below. Demi's Balance Sheet at Dec 31 Demi's Catering inc. 2020 2019 income statement Current assets For the Year ended december 31, 2020 Cash $20,140 $21,000 revenue $130,000 Accounts Receivable 17,000 19,000 Cost of Sales 72,000 Food & Beverage Inventory 21,000 15,000 gross Profit 58,000 total Current assets 58,140 55,000 operating expenses long-term assets Depreciation Expense 20,500 Land() 110,000 60,000 Other Operating Expenses 9,950 Equipment(2) 100,000 140,000 Accumulated Depreciation Total Operating Expenses 30,450 (40,500) (60,000) income from operations 27,550 total long-term assets 169,500 total assets $227,640 140,000 $195,000 other income and expenses Interest Expense (4,050) liabilities Gain on Sale of Equipment 1,700 Current liabilities Income before Income Tax Expense 25,200 Accounts Payable $29,000 $25,000 Income Tax Expense 7,560 Taxes Payable 22,000 22,000 net income (loss) $17,640 total Current liabilities 51,000 47,000 Loan Payable(3) 70,000 65,000 total liabilities 121,000 112,000 shareholders' equity 85,000 70,000 Common Shares Retained Earnings(4) 21,640 13,000 total shareholders' equity 106,640 83,000 total liabilities and shareholders' $227,640 $195.000 equity additional information (1) There was no sale of land. (2) Equipment was purchased for an amount of $80,000. (3) The company did not repay any loan principal during the year. (4) The company declared and paid dividends during the year. Prepare Statement of Cash Flows for 2020