QUESTION 6 The income statement and comparative balance sheet of James Corporation is given below: James Corporation Income Statement for the year ended December 31, 2018 Sales Cost of goods sold Gross profit Selling & Administrative expenses Operating profit Gain on sale of investment Profit before tax Tax expenses Profit after tax RM 5,000 1,500 3,500 465 3,035 165 3,200 300 2,900 James Corporation Statement of Balance Sheet As at December 31, 2018 and 2017 2018 2017 Assets: Cash and cash equivalents Account receivable Inventory Plant assets Accumulated depreciation Long-term investments Total Liabilities and capital: Accounts payable Accrued liabilities Bond payable Capital stock Retained Earnings Total 1050 875 700 950 -600 650 3,625 400 650 950 850 -410 1250 3,690 530 220 700 950 1,225 3,625 450 130 1775 450 885 3,690 During the year 2017, a dividend of RM2,560 was declared and paid by management of James Corporation. Some plant assets were purchased during 2018 and the payment was settled by issuing common stock amounting to RM60. Required: Using the data given above, prepare statement of cash flows of James Corporation using indirect method. (20 Marks)