Prepare statement of cash flows for 2020 using the direct method.

$3,700,000.00 Sales revenue Less expenses: Cost of goods sold Selling and administrative expenses Depreciation and amortization Rent expense Miscellaneous expenses Total expenses Other revenues and expenses: Interest expense Gain on sale of equipment Loss on debt retirement 2,041,000.00 545,000.00 185,000.00 15,000.00 142,000.00 2,928,000.00 34,600.00 (6,000.00) 11,000.00 39,600.00 Earnings before income tax Income tax expense Net earnings and comprehensive income 732,400.00 311,800.00 $ 420,600.00 2019 $ CWI Balance Sheet - DRAFT As at Decemebr 31, 2020 2020 Assets Current assets: Cash 18,500 Accounts receivable 515,000 Inventory 420,000 Total current assets 953,500 Land 350,000 Plant and Equipment 1,760,000 Less: Accumulated depreciation 890,800 Patents 93,000 Total assets: 2,265,700 16,000 490,000 380,800 886,800 150,000 1,209,000 878,000 97,000 1,464,800 AN $ $ $ Liabilities and Shareholder Equity Liabilities: Current Liabilities: Accounts payable Salaries and wages payable Income tax payable Total current Liabilities Long-term debt 290,000 45,700 106,900 442,600 1,109,000 316,200 42,100 99,300 457,600 595,000 Total liabilities 1,551,600 1,052,600 Shareholder's Equity Common shares, no-par Retained Earnings Total shareholder equity 183,000 531,100 714,100 180,000 232,200 412,200 Total liabilities and shareholder Equity $ 2,265,700 1,464,800 Additional information: CWI sold equipment that had an original cost of $292,000 and a net book value of $123,800. Other equipment was purchased for cash. Patent amortization was $4,000. Long-term debt with a face value of $400,000 was repaid during the quarter and other long-term debt was issued at a lower interest rate. CWI issued shares for land during the period. Other common shares were retired (bought back and cancelled) at book value as part of tax planning restructuring for the Overtons as advised by their CPA firm advisors. Assume unexplained changes in accounts stem from logical transactions