QUESTION 4 The comparative statement of Financial position of Sonia Studio as at 31 December, 2019 and 2020 are as follows: Sonia Studio Sdn. Bhd. Comparative Statement of Financial Position As at 31 December, 2019-2020 Non-current Assets Land Equipment Long term investment 2020 58,100 74,900 10,000 2019 98.900 73,600 5.000 Current Assets Cash Account receivable Inventory Prepaid expenses Total Assets 32,000 86,000 110,000 11,000 382,000 37,000 64,000 83,000 9,500 371,000 79,700 34,100 51.600 8,500 Share capital Retained earnings Non-current liability Long term note payable 98,000 94,200 Current liability Account payable 152,900 70.800 Utility payable 3,500 2.500 Tax payable 13,300 14,400 Salary payable 500 3,100 Total liability and Equity 382,000 245,100 Additional information for the year of 2020 are as follows: 1. Net Income, RM74,400 2. Depreciation expense on equipment, RM13.900 3. Purchased long-term investment, RM5,000 4. Acquired new equipment by cash, RM15,200 5. Sold land for RM33,800, including RM7,000 loss 6. Paid long term note payable, RM45,500 7. Received cash for issuance of shares, RM28.100 8. Paid cash dividends, RM47,800 Required: (a) Prepare the statement of cash flows of Sonia Studio for the year ended 31 December 2020, using indirect method. (20 marks) (b) Considering the net income and the company's cash flow during 2020. Was that a good year or a bad year? Give your reasons. (5 marks) Total:25 marks