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Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow Marine Corporation Income Statement For the
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow Marine Corporation Income Statement For the Year Ended December 31, 2019 Sales Less: Cost of Goods Sold Gross Profit Less: Seling, General & Administrative Expenses $3,500,000 2,050,000 1,450,000 240,000 Operating profit Less: Depreciation Expense Earnings Before Interest and Taxes Less: Interest Expense Earnings Before Taxes Less: Taxes (50%) Net Income 1.210,000 160,000 1,050,000 80,000 970,000 485,000 $ 485,000 Marine Corporation Assets Cash Marketable Securities Accounts Receivable Inventories Investments Total current assets Plant and Equipment Less Accumulated Amortization Net plant and Equipment Total Assets Balance Sheet 2018 $35,000 185,000 225,000 250.000 80,000 $775,000 1,100,000 410.000 2019 $40,000 170,000 210,000 240,000 55.000 $715,000 1,550,000 580,000 $690,000 1,465,000 $970,000 1,685,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $90,000 Notes payable 75,000 Accrued Expenses 20,000 Income Taxes Payable 8,000 Bonds Payable (2016) 700,000 Common Stock (100,000 shares) 200,000 Retained Earnings 372.000 Total Liabilities' and Shareholders' $1,465,000 Equity $75,000 25,000 5,000 12,000 800,000 200,000 568,000 $1,685,000 Required: Prepare a Statement of Cash Flows for the year ended December 31, 2019 using the Indirect Method showing the operating, investing and financial cashflows up to the net change in cash
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