Prepare the cash flow statement for Ashmont Cycles Corporation for the year ended December 31st 2020 using the indirect method. (4 marks) Ashmont Cycles Balance Sheet As of December 31, 2019 and 2020 2019 2020 Assets Cash Accounts receivable Inventory Prepaid expenses 8,000 3,368 2,500 2,200 65,000 71,500 1,500 1,800 Other current assets Total current assets Property, plant, and equipment Accumulated depreciation Net property, plant, and equipment Total Assets Liabilities Accounts payable Line of credit Current portion of long-term debt Accrued expenses Total Current Liabilities Long-term debt Total Liabilities 500 600 77,500 79,468 12,000 17,400 (2,400) (3.480) 9,600 13,920 $ 87,100 $ 93,388 3,000 3,200 10,000 10,000 4,000 4,000 1,100 1,100 18,100 18,300 16,000 12,000 $ 34,100 $ 30,300 Owner's Equity Contributed capital 50,000 50,000 Retained earnings 3,000 13,088 Total Owner's Equity $ 53,000 $ 63,088 Ashmont Cycles Income Statement For the year ended December 31, 2019 and 2020 2019 2020 Sales $155,000 $205,000 Cost of goods sold (85,000) (106,000) Gross Profit 70,000 99,000 Operating Expense: Selling, general and administrative expenses (40,000) (58,000) Utilities expense (5,000) (6,960) Rent expense (10,000) (16,240) Depreciation and amortization (1,080) (1,080) Total operating expenses (56,080) (82,280) Operating Income 13,920 16,720 Interest expense (1,200) (1,200) Income before Income Taxes 12,720 15,520 Income taxes (35%) (4,452) (5,432) Net Income $8,268 $10,088