Part 2 - Statement of Cash Flows Tax Consultants Inc. began operations on January 1, 2019, when it issued 20,000 common shares for $20,000 cash. The company performed tax consulting services throughout its first two years. For 2020, the comparative statements of financial position, income statement, and additional information are presented below (including an analysis of the change in SFP accounts from 2019 to 2020). Change Increase/Decrease (a) 49,000 increase (b) 36,000 increase (c) 10,000 decrease Comparative Balance Sheets (Statements of Financial Position) Dec. 31, Dec. 31, Assets 2020 2019 Cash $ 69,000 $10,000 Accounts receivable 46,000 10,000 Equipment (net) 40,000 50,000 $155,000 $70,000 Liabilities and Shareholders' Equity Accounts payable $ 35,000 $30,000 Common shares 80,000 20,000 Retained earnings 40,000 20,000 $155,000 $70,000 (d) 5,000 increase (e) 60,000 increase (f) 20,000 increase Income Statement For the Year Ended December 31, 2020 Revenues Operating expenses other than depreciation Depreciation expense Income before income taxes Income tax expense Net income $125,000 75,000 10,000 40,000 6,000 $ 34,000 Note: Tax Consultants Inc. did not purchase of sell any equipment during 2020. Required: 1. Prepare a statement of cash flows using the direct approach for Tax Consultants Inc. for 2020. 2. Determine the cash collected from customers and dividends paid during 2020. 3. After completing the statement of cash flows, discuss the key factors that led to the cash increase or decrease by type of activity (operating, investing, and financing)