Part B (10 marks) Fast Growing Company shows the following statements: Comparative Statements of Financial Position December 31 2020 2019 Cash $127,000 $137,800 Accounts receivable 283,700 268,000 Inventory 166,000 235,800 Prepaid expenses 18,000 14,600 Office equipment 350,000 250,000 Acc. Depreciation - Equip. (137.300) (100,000) Total assets $807.400 $806,200 Accounts payable Other current liabilities come tax payable ends payable re capital - Ordinary, $276,500 33,800 17,600 100,000 250,000 $255,000 31,000 15,200 180,000 200,000 par value ned earnings liabilities & equity 129.500 $807.400 125,000 $806,200 Page 3 of 8 Income Statement for the year ended December 31, 2020 Sales Cost of goods sold Gross profit Depreciation expense General administrative expenses Selling and distribution expenses Loss on sale of office equipment Profit before tax Income tax Net profit 51.350,000 836.200 $513.800 60,300 165.300 35,700 2.000 $245,500 47.800 $197.200 Additional Information a New office equipment was acquired for $150,000 by cash payment. b. An old office equipment with cost of $50,000 and accumulated depreciation of $33,000 was sold for $10,000 cash. c. All purchases and sales of merchandise inventory are on credit. Required: i. Use the indirect method to compute cash flows from operating activities. (8 marks) ii. Give an example of transaction which does not have cash flow impact on (a) investing activities, (b) financing activities. (2 marks) Page 4 of 8