Problem 1. Indirect Cash Flow Statement (6 points) Presented below are the 2020 Income Statement and Balance Sheet for Haircuts R Needed, Inc. Prepare a Cash Flow Statement as of December 31, 2020. Additional Information for the 2020 fiscal year includes: 1) Cash dividends of S1,000 were declared and paid. 2) Equipment with a cost of $1,500 and accumulated depreciation of $1,000 was sold for $500. Haircuts R Needed, Inc. Income Statement For the Year Ended December 31, 2020 S 14,250 3,400 S 17,650 Sales Revenue Service Revenue Total Revenue Operating Expenses: Cost of Goods Sold Depreciation Selling General and adninistrative Total Operating Expenses Operating Income Interest Expense Income Before Income Taxes Income Tax Expense Net Income 5,600 1,600 2,400 1,500 11,100 6.550 200 6,350 2.500 3.850 S Haircuts R Needed, Inc. Balance Sheet As of December 31, 2019 and 2020 2020 2019 S Assets Cash Accounts Receivable Inventory Prepaid Rent Plant and Equipment Less: Accumulated Deprecation Total Assets 7,350 2,500 4,000 150 14,500 (S.100) 23,400 2,200 2,200 3,000 300 12,000 (4,500) 15,200 S S S S 1,100 Liabilities and Shareholder's Equity Accounts Payable Interest Payable Deferred Service Revenue Income Taxes Payable Note Payable, due 12,31, 2023 Common Stock Retained Earnings Total Liabilities and Shareholder's Equity 600 800 1,400 100 800 550 5,000 10,000 5,550 23.400 10,000 2,700 15,200 S S