PART 2 (50 MARKS) Wong Corporation began operations on January 1, 2019. Its adjusted trial balance at December 31, 2019 and 2020, is shown below along with some other information P1101 Account Wong Corporation Adjusted Trial Balance (000) December 31 2020 2019 $ 21 $ 32 96 100 Accounts payable Accounts receivable. Accumulated depreciation, equipment Accumulated depreciation, machinery. Allowance for doubtful accounts Cash Cash dividends Common shares. Depreciation expense, equipment Depreciation expense, machinery Equipment Income tax expense Machinery.. Notes payable, long term Other expenses (including losses). Preferred shares Retained earnings Revenues (including gains) Unearned revenue 52 25 21 15 36 70 95 20 20 100 7 7 4 110 10 19 34 64 373 200 30 30 75 79 410 316 4 $ Other information regarding Wong Corporation and its activities during 2020 a. Assume all accounts have normal balances. b. Equipment was purchased for $26,000 cash after selling old equipment for $5,000 cash. c. Common shares were issued for cash d. Cash dividends were declared and paid e. Machinery was sold for cash of $10,000 f. All revenues and other expenses were on credit. Required Using the information provided, prepare a statement of changes in equity and a statement of cash flows (applying the direct or direct method)" for the year ended December 31, 2020, plus a classified balance sheet at December 31, 2020. Analysis Component: Refer to the statement of cash flows just prepared. Explain how it was possible for Wong Corporation to purchase $26 (thousand) of new equipment and pay $20 (thousand) dividends given that the company's income was only $16 (thousand)