MONSTADT COMPANY Comparative Balance Sheets December 31, 2020 ASSETS 2020 2019 Cash $ 54.000 $ 37.000 Account Receivable $ 68.000 $ 26.000 Inventory $ 54.000 $ Prepaid Expenses $ 4.000 $ 6.000 Land $ 45.000 $ 70.000 Buildings $ 200.000 $ 200.000 Accumulated Depreciation - Buildings $ (21.000) $ (11.000) Equipment $ 193.000 $ 68.000 Accumulated Depreciation - Equip. $ (28.000) $ (10.000) Totals $ 569.000 $ 386.000 Increase/Decrease 17.000 Increase 42.000 Increase 54.000 Increase 2.000 Decrease 25.000 Decrease 10.000 Increase 125.000 Increase 18.000 Increase 40.000 Liabilities and Stockholders' Equity Accounts Payable Accrued Expenses Payable Bonds Payable Common Stock ($1 par) Retained Earnings Totals $ 23.000 $ 10.000 $ 110.000 $ 220.000 $ 206.000 $ 569.000 $ $ $ $ $ $ 150.000 60.000 136.000 386.000 17.000 Decrease 10.000 Increase 40.000 Decrease 160.000 Increase 70.000 Increase $ 890.000 MONSTADT COMPANY Income Statement For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold $ 465.000 Operating Expenses $ 221.000 Interest Expense $ 12.000 Loss on disposal of equipment $ 2.000 Income before Income Taxes Income Tax Expense Net Income $ $ $ $ 700.000 190.000 65.000 125.000 Additional information: 1. All depreciation expense $33.000 is in the operating expenses. 2. Land sold at Book Value in cash. 3. Dividends declared and paid were $55.000 in 2020. 4. Equipment was purchased at a cost of $166.000. Another equipment at a cost of $41.000 and a book value of $36,000 was sold for $34,000 in cash. 5. Bonds were redeemed $10.000 in cash and $30.000 by issuing common stock 6. $130.000 of Common Stock ($1 par) is issued for cash.. Instructions: a. Prepare a Cash Flow from operation section for Monstadt Company using Indirect Method.(5%) b. Prepare a statement of cash flows for Monstadt Company for the year 2020. (Direct Method) (10%)