QUESTION 8: Preparation of Statement of cash ows The income statement of Stalwart Ltd is shown below: STALWART LTD Income statement for the year ended 31 December 2020 Sales $8,200,000 Cost of sales 5,400,000 Gross prot 2,800,000 Operating expenses Selling expenses $500,000 Administrative expense 700,000 Depreciation expense 90,000 Amortisation expense 30,000 1,320,000 Prot EM Additional information: Accounts receivable increased $400,000 during the year. Inventory increased $250,000 during the year. Prepaid expenses increased $200,000 during the year. Accounts payable to merchandise suppliers increased $100,000 during the year. Accrued expenses payable increased $180,000 during the year. RE! EUIRED: Calculate Cash receipts from customers. Show all your workings (3 marks) Calculate Cash payments to suppliers. Show all your workings (3 marks) Calculate Cash payments for operating expenses. Show all your workings (3 marks) Explain what additional information you would need to be able to complete the reconciliation of prot to cash provided by operating activities, i.e. the indirect method. Include in your explanation an outline of the layout of the indirect method. (6 marks) [Total 15 marks] P'PP'PL\" ssp'a