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 Dre-3.31.2020 Assets: Cash .5_ 20.000 Accounts Receivable 225.000 321.000 Inventories 270.000 465.000 Equipmen'ls 600.000 720.000 {-} Accumulated Depreciation 240.000 306.000 Equipments, Net 360.000 414.000 Total Assets 915.000 m Liabilities and Owners' Equity Bank Loan 195.000 90.000 Accounts Payable 120.000 60.000 Tax Payable 45.000 159.000 Accrued Expenses 30.000 36.000 Capital 450.000 600.000 Retained Earnings 25.000 215.000 Total Liabilities and CLE. 915.000 1.220.000 North Star Company Income Statement For the year oi 2020 Sales 1.650.000 {} Cost of Goods Sold 900.000 Gross Profit 750.000 General Administrative Expenses 180.000 Depreciation Expense 126.000 306.000 Operating Income 444.000 Interest Expense 30.000 Loss on Sale of Equipment 15.000 45.000 Income Before Tax 399.000 Tax 159.000 Net income _240.m