Observe the condensed financial data of Dave N Busters Company: Key Details: Land was sold for cash at cost for $35,000 New equipment costing $80,000 was purchased during the year 2020. Old equipment having an original cost of $40,000 and accumulated depreciation of $9,000, was sold for $34,000 for cash. Issued 25,000 ordinary shares with a $1 per value for land with a fair value of $25,000. A cash dividend of $8 2940 was paid during the year 2020.

QUESTION #1: Prepare a cash flow statement using indirect method:

DNB Company Comparative Statements of Financial Position December 31, 2020 (S) 20199) Assets Land 140000 150000 Equipment 215000 175000 Accumulated Depreciation- Equipment (70000) (42000) Buildings 250000 250000 Accumulated Depreciation-Buildings (70000) (50000) Prepaid Expenses 12140 16540 Inventory 170000 140000 Accounts Receivable 77000 64000 Cash 41460 57000 Total 765600 760540 Equity and Liabilities Share Capital-Ordinary 275000 250000 Retained Earnings 187600 200540 Bonds Payable 265000 265000 Accounts Payable 38000 45000 Total 765600 760540 16 397000 DNB Company Income Statement For the Year Ended December 31, 2020 $ Sales Revenue 400000 Gain on Disposal of Plant Assets 3000 Less: Cost of Goods Sold 210600 Operating Expenses. Excluding Depreciation 25000 Depreciation Expense 57000 Charges of Prepaid Expense 4400 Income Tax 30000 Net Income After Tax 327000 70000