O The 2020 income statement and comparative balance sheet of Sterling Design Ltd. follow Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Sterling Design Ltd. had no non-cash financing and investing transactions during 2020. During the year, there were no sales of land or plant and equipment, and no issuances of notes payable Rennirent Requirement 1. Prepare the 2020 cash flow statement by the indirect method. (Use parentheses or a minus sign for numbers to be subtracted) Sterling Design Ltd Cash Flow Statement 12/15/20/20 Income Statement Sterling Design Lid. Income Statement For the Year Ended September 30, 2020 Revenues Sales revenue $ 273,000 15,000 Interest revenue Total revenues 288,000 IS 86,000 29.000 Expenses Cost of goods sold Salaries expense Amortization expense Other operating expenses Interest expense 5,800 28,000 16,600 45,000 Income tax expense Total expenses 210.400 $ 77.600 Net incorre 1271522120 Balance Bheel Sterling Design Ltd. Balance Sheet September 30, 2020 and 2019 2020 2019 $ 7,800 S 7,900 33,000 26.900 Current assets Cash and cash equivalents Accounts receivable Interest receivable Inventory Prepaid expenses Plant and equipment, net Land 3,300 39,000 4,100 840 75,000 3.300 69,000 115,000 59,000 58,000 $ 271,200 $ 230,940 S 31 400 $ 28,800 4,800 Total assets Current liabilities Accounts payable Interest payable Salaries payable Other accrued liabilities Income tax payable Long term liabilities Nates payable Shareholders' equity Common shares 4,500 13.700 5.900 8.400 32.000 8.900 8.100 75.000 100.000 44 000 74.000 58.900 Related earnings 3,740 Total babies and shareholders equity S 271 200 S230 940 2020 income statement and comparative balance sheet of Sterling Design Ltd, follow. (Click the icon to view the income statement.) (Click the icon to view the erling Design Ltd. had no non-cash financing and investing transactions during 2020. Dur quired Prepare the 2020 cash flow statement by the indirect method. Evaluate the cash flow for this company. 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 Increase in accounts receivable Increase in interest receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in interest payable Decrease in salaries payable Decrease in other accrued liabilities Increase in income tax payable ater any number in the edit fields and then continue to the next question lictease Come tax payable Net cash inflow from operating activities Cash flows from investing activities Acquisition of land Acquisition of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable Issuance of common shares Net cash outflow from financing activities Net increase (decrease) in cash Cash and cash equivalents October 2019 Cash and cash equivalents September 30, 2020 Requirement 2. Evaluate the cash flow for this company Sterling Design Ltd.'s 2020 cash flows are overall Operations provided cash flows which is the source of cash for a healthy company Sterling Design Ltd. is investing in All are signs negative positive Enter any number in the edit fields and t e next question ULUI Oash and cash equivalents, September 30, 2020 Requirement 2 Evaluate the cash flow for this company. paying dividends while paying off a note payable purchasing equipment while using a note payable purchasing tand while issuing common shares Sterling Design Ltd.'s 2020 cash flows are over source of cash for a hea Sterling Design Ltd is investing in and All are signs Enter any number in the edit fields and then continue to the next