Preparing a Cash Flow Worksheet Taser Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $78,000 $127,600 Accounts receivable (net) 136,000 136,000 Merchandise inventory 312,000 340,000 Investments, long-term 40,000 Plant assets 674,000 722,000 Accumulated depreciation (176,000) (136,000) Total assets $1,024,000 $1,229,600 Liabilities and Stockholders' Equity Accounts payable $84,000 $76,000 Salaries payable 6,000 2,000 Income taxes payable 8,000 14,000 Bonds payable 400,000 400,000 Premium on bonds payable 16,000 14,800 Common stock, no-par 480,000 622,000 Retained earnings 30,000 100,800 Total liabilities andstockholders' equity $1,024,000 $1,229,600 Income Statement Income Statement, For Year Ended December 31 Sales revenue Cost of goods sold Depreciation expense Salaries expense Income tax expense Interest expense Other expenses Gain on sale of plant assets Net income 2020 $480,000 (192,000) (24,000) (88,000) (40,000) (28,000) (9,200) 12,000 $110,800 Additional information 1. Purchased a plant asset, $120,000; issued capital stock in full payment. 2. Purchased a long-term investment in equity securities accounted for cash, $40,000. 3. Declared and paid a cash dividend, $40,000. 4. Sold plant asset for $20,000 cash (cost, $72,000; accumulated depreciation, $64,000). 5. Sold capital stock, 2,000 shares at $11 per share cash. Required Cash Flow Worksheet Cash Flow Reconciliation Dr. Cr. 2020 $ $ I $ a. Prepare a cash flow worksheet. Comparative Balance Sheets 2019 Cash and cash equivalents $78,000 $ Accounts receivable 136,000 Merchandise inventory 312,000 Investments, long-term 0 Plant assets 674,000 Accumulated depreciation (176,000) Total assets $1,024,000 Accounts payable $84,000 Salaries payable 6,000 Income taxes payable 8,000 Bonds payable 400,000 Premium on bonds payable 16,000 Common stock, no par 480,000 Retained earnings 30,000 Total liabilities and stockholders' equity $1,024,000 Cash Flows from Operating Activities Net income Depreciation expense $ $ Gain on sale of fixed assets Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in income taxes payable Cash Flows from Investing Activities Increase in income taxes payable Cash Flows from Investing Activities Purchase of long-term investments Cash Flows from Financing Activities Issuance of stock Net cash and cash equivalents increase Total $ $ Check Cash Flow Worksheet Cash Flow Reconciliation b. Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash and prepare the noncash disclosure note. Cash Flow Reconciliation Amount Net cash provided (used) by operating activities Net cash provided (used) by investing activities Net cash provided (used) by financing activities Net change in cash and cash equivalents Cash and cash equivalents, January 1, 2020 Cash and cash equivalents, December 31, 2020 $ Noncash Transaction Amount $ Check