Question 8 (40 marks) Use the following data to construct a statement of cash flows using the direct and indirect methods. Cash Accounts receivable Prepaid insurance Inventory Fixed assets Accumulated Depreciation Total assets 20X2 $3,680 $23,000 $4,600 $34,040 $290,720 ($41,400) $314,640 20X1 $12,880 $29,900 $6,440 $31,280 $248,400 ($27,600) $301,300 Accounts payable Wages payable Note payable Capital stock Retained earnings Total Liabilities & Equity $16,560 $3,680 $159,160 $80,960 $54,280 $314,640 $14,720 $6,440 $147,200 $77,280 $55,660 $301,300 Sales Cost of goods sold Depreciation expense Insurance expense Wage expense Net income 20X2 $184,000 (113,160) (13,800) (10,120) (46,000) 920 Additional information: During 20x2 declared and paid dividends of $2,300 During 20x2, the company paid $42,320 in cash to acquire new fixed assets. The accounts payable was used only for inventory. No debt was retired during 20x2