Marks Question B: Statement of Cash Flows (13 marks: 23 min 2:26:44 The following unclassified statement of financial position relates to Lobo Inc. as at December 31: LOBO INC. Comparative Statement of Financial Position December 31 2020 2019 Assets Cash in bank $ 111,000 $ 120,000 Accounts receivable, net 230,000 303,000 Inventories, at cost 190,000 160,000 Prepaid expenses 34,700 0 Land 60,000 72,500 Plant and equipment, net 325.000 253 500 Total assets $950.700 909.000 Liabilities and Shareholders' Equity Accounts payable $100,000 $ 40,000 Accrued liabilities 21,700 30,000 0 38,000 Dividends payable Bonds payable, net 103,000 105,000 Common shares 600,000 600,000 88,000 134.000 Retained earnings $909.000 S950.700 Total liabilities and shareholders' equity Exam Support Lobo's condensed statement of earnings for the year ended December 31, 2020 showed the following information equity >950.700 2.20.23 Lobo's condensed statement of earnings for the year ended December 31, 2020 showed the following information. LOBO INC. Statement of Earnings For the Year Ended December 31, 2020 Net sales Cost of sales Gross profit Operating expenses, including depreciation of $60,000 Interest expense Gain on sale of land Earnings (loss) before income tax Income tax recovery Net earnings (loss) $1,560,000 (925,000 635,000 (664,000) (8.000) 25.000 (12,000) 4.000 S68.000 Additional information: a) The land that was sold during the year had an original cost of $12,500. b) Equipment was acquired in 2020, and no disposals were made during the year. Income tax recovery Net earnings (loss) (12,000) 4,000 (8.000) Additional information: a) The land that was sold during the year had an original cost of $12,500. b) Equipment was acquired in 2020, and no disposals were made during the year. Required: 1. Prepare, in good form, the operating activities section of the statement of cash flows for the year ended December 31, 2020. Use the indirect method and show all relevant calculations. Do NOT prepare a complete statement of cash flows. (6 marks) 2. Calculate the amount of cash payments to suppliers of merchandise. The accounts payable relate only to purchases of merchandise for sale. (3 marks) 3. Prepare the investing activities section of the statement of cash flows for the year 2020. (4 marks)