Question 10 of 12 0.95/1 5 Condensed financial data of Metlock Company for 2020 and 2019 are presented below. METLOCK COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,760 $1,180 Receivables 1,750 1,290 Inventory 1,620 1,890 Plant assets 1,930 1,690 Accumulated depreciation (1,280) (1,160) Long-term investments (held-to-maturity) 1,290 1,440 $7,070 $6,330 Accounts payable $1,180 $920 Accrued liabilities 200 260 Bonds payable 1,370 1,550 10 4 Question 10 of 12 0.95/1 iii 7,070 PU,JU Accounts payable $1,180 $920 Accrued liabilities 200 260 Bonds payable 1,370 1.550 Common stock 1,930 1,670 Retained earnings 2,390 1,930 $7,070 $6,330 METLOCK COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,800 Cost of goods sold 4,700 Gross margin 2,100 Selling and administrative expenses 910 Income from operations 1,190 Question 10 of 12 0.95/1 iii JLH115 CU CITITOLI CLIVE LAPLIISLO ZIU Income from operations 1,190 Other revenues and gains Gain on sale of investments 80 Income before tax 1,270 Income tax expense 550 Net income 720 Cash dividends 260 Income retained in business $460 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) METLOCK COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Question 10 of 12 0.95/1 ii For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Cash Receipts from Customers 6340 Cash Paid for Selling/Administrative Expenses $ Cash Paid for Merchandise Cash Paid for Income Taxes -550 i 5570 i Net Cash Provided by Operating Activities 770 Cash Flows from Investing Activities Purchase of Plant Assets -170 Sale of Investments 230