Prepare Statement of cash flow using direct method

Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2020. METLOCK INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/2012/31/19 Cash $6,000 $7,000 Accounts receivable 61,700 51,200 Short-term debt investments (available-for-sale) 34,900 18,000 Inventory 39.700 60,400 Prepaid rent 4,900 4,000 Equipment 155,500 (35,100) 128,900 (25,000) Accumulated depreciation-equipment Copyrights 46,500 50,400 Total assets $314,100 $294,900 Accounts payable $45,600 $39,800 Income taxes payable 6,000 Salaries and wages payable 4,000 8,000 8,000 Short-term loans payable 59,700 Long-term loans payable Common stock. $10 par 100,000 30,000 4,000 9,900 68,600 100,000 30,000 36,600 $294,900 Contributed capital, common stock Retained earnings 58,800 $314,100 Total liabilities & stockholders' equity METLOCK INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,375 Cost of goods sold 175,000 Gross profit 164,375 Operating expenses 119.400 Operating income 44,975 Interest expense $11,500 Gain on sale of equipment 1.900 9,600 Income before tax 35,375 Income tax expense 7,075 Net income $28,300 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020, Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash METLOCK INC. Statement of Cash Flows