Question - 5) Prepare the Statement of Cash Flows for the year 2020 by using DIRECT METHOD. North Star Company Comparative Balance Sheets Dec.31.2019 Dec.31.2020 Assets: Cash Accounts Receivable Inventories 60.000 225.000 270.000 20.000 321.000 465.000 Equipments (-) Accumulated Depreciation Equipments, Net 600.000 240.000 360.000 720.000 306.000 414.000 Total Assets 915.000 1.220.000 Liabilities and Owners' Equity Bank Loan Accounts Payable Tax Payable Accrued Expenses 195.000 120.000 45.000 30.000 90.000 60.000 159.000 36.000 Capital Retained Earnings 450.000 75.000 600.000 275.000 Total Liabilities and O.E. 915.000 1.220.000 North Star Company Income Statement For the year of 2020 1.650.000 900.000 750.000 180.000 126.000 Sales (-) Cost of Goods Sold Gross Profit General Administrative Expenses Depreciation Expense Operating Income Interest Expense Loss on Sale of Equipment Income Before Tax Tax Net Income 306.000 444.000 30.000 15.000 45.000 399.000 159.000 240.000 Additional Information: 1. Declared and paid $40,000 dividend to shareholders. 2. Sold an equipment for $75,000 cash. The cost of sold equipment was $150,000 and its accumulated depreciation was $60,000. 3 azn