Question 2 of 4 Headland Ski Haus had the following statements prepared as of December 31, 2020. HEADLAND SKI HAUS COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $2,600 Accounts receivable $4,000 98,000 Short-term debt investments (available-for-sale) 102,000 96,000 122.000 Inventories 92.000 Prepaid insurance 54,000 5,700 3,900 Ski equipment 89,000 44,000 Accumulated depreciation-equipment (23,500) (18,000) Trademarks 79.000 82,000 Total assets $ 441,000 $391.700 Accounts payable $ 93,600 $ 73,000 21,800 16,000 4,000 9.100 Income taxes payable Wages payable Short-term loans payable Long-term loans payable Common stock. $1 par 23,500 0 75.900 122.000 100,000 100.000 Additional paid-in capital 20,000 20,000 102,200 Retained earnings 51,600 $441,000 $ 391,700 Total liabilities & stockholders' equity HEADLAND SKI HAUS INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales Cost of goods sold $530,500 298,000 Gross profit 232,500 Operating expenses 95,000 Operating income 137.500 Interest expense $ 20,900 Loss on sale of equipment 4,000 24.900 Income before tax 112,600 Income tax expense 41,000 Net income $ 71,600 Additional information: Question 2 of 4 > 8/16 Income before tax 112.600 Income tax expense 41.000 Net income 571.600 Additional information 1 2 Dividends in the amount of $ 21.000 were declared and paid during 2020 Depreciation expense and amortization expense are included in operating expenses Equipment that had a cost of 5 24.900 and was 20% depreciated was sold during 2020 3 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either - 65-15.000 or in parenthesis es (15.000 HEADLAND SKI HAUS Statement of Cash Flows