On. 1. From the following prepare cash flow statement using - Indirect method of Cash from operations (9 Marks) Alpha Company LLC Balance Sheet December 31, 2019 and 2020 Assets Liabilities 2020 2019 2020 2019 Current Assets: Current Liabilities Cash and cash equivalents 22000 3000 Accounts payable 35000 26000 Accounts receivable 22000 23000 Acccrued liabilities 7000 9000 Inventory 35000 34000 Income Tax payable 10000 10000 Total Current Assets 79000 60000 Total current liabilities 52000 45000 Equipment -net 126000 72000 Bonds payable 84000 53000 Stockholders Equity Commonstock 52000 20000 Retained earnings 27000 19000 Treasury stock (10000 (5000) 205000 132000 205000 132000Transaction data for 2020 Purchase of equipment 140000 payment of dividends 18000 Issuance of common stock to retire bonds payable 13000 Issuance of bonds payable to borrow cash 44000 Cash receipt from issuance of common stock 19000 Cash receipt from sale of equipment (book value $76000) 74000 Purchase of treasury stock 5000Income Statement For the Year Ended December 2020 Revenue and gains Net sales 662000 Cost of goods sold 560000 Gross profit 102000 Operating expenses Salary expenses 46000 Depreciation expenses 10000 Rent expenses 2000 Total operating expenses 58000 Income from operations 44000 Other items: Loss on sale of equipment (2000) Income before income tax 42000 Income Tax expenses 16000 Net Income 26000FORMAT FOR CASH FLOW STATEMENT : INDIRECT METHOD. (Plus or minus) Cash flows from operating activities Amount Amount Net income Adjustments to reconcile net income to net cash provided by operating income Operating activities: +Depreciation / amortization of expenses + loss on sale of long term assets - profit on sale of long term assets -increase in current assets other than cash +decrease in current assets other than cash +increase in current liabilities -Decrease in current liabilities Net cash provided (used for) operating activities (plus/minus) Cash flows from Investing activities -Purchase of long term assets + cash from sale of long-term assets ( plant, investments, land, building, equipment ) +Interest received +Dividends received Net cash used in investing activitiesCash flows from Financing activities +cash receipts from issue of share capital + cash receipts from issue of notes/bonds payable(borrowings) - payment of notes/bonds payable -payment of dividend Net cash used in financing activities 0 =Net Increase/[Decrease) in cash and cash equivalents +Cash/ cash equivalent at the start of the period =Cash/Cash equvalent at the end of the period