Question:

Following is information for the Tri-County Carting Corporation for fiscal years 20-A and 20-B:

Tri-County Carting Corporation Comparative Balance Sheet December 31, 20-B and 20-A
Assets	20-B	20-A	Inc./Dec.
Current assets:
Cash	$ 58,240	$ 58,300	$ (60)
Government notes	1,650	5,500	(3,850)
Accrued interest receivable	82	192	(110)
Accounts receivable (net)	154,245	139,150	15,095
Merchandise inventory	177,564	185,658	(8,094)
Supplies and prepayments	11,041	7,524	3,517
Total current assets	$402,822	$396,324	$ 6,498
Property, plant, and equipment:
Store equipment	$132,000	$106,700	$25,300
Less accumulated depreciation store equipment	(49,500)	(38,500)	(11,000)
Delivery equipment	123,200	88,000	35,200
Less accumulated depreciation delivery equipment	(34,375)	(22,000)	(12,375)

Office equipment	105,050	93,472	11,578
Less accumulated depreciation office equipment	(22,000)	(16,775)	(5,225)
Total property, plant, and equipment	$254,375	$210,897	$43,478
Total assets	$657,197	$607,221	$49,976
Liabilities
Current liabilities:
Notes payable	$ 27,720	$ 32,450	$ (4,730)
Accounts payable	89,416	128,550	(39,134)
Accrued and withheld payroll taxes	2,722	4,180	(1,458)
Accrued interest payable	231	220	11
Total liabilities	$120,089	$165,400	$(45,311)
Stockholders' Equity
Common stock (100,000 shares, $10 par)	$275,000	$269,500	$ 5,500
Paid-in capital in excess of par common stock	110,000	107,250	2,750
Retained earnings	152,108	65,071	87,037
Total stockholders' equity	$537,108	$441,821	$ 95,287
Total liabilities and stockholders' equity	$657,197	$607,221	$ 49,976

Tri-County Carting Corporation Income Statement For the Year Ended December 31, 20-B
Net sales	$1,265,275
Cost of goods sold	742,775
Gross profit	$ 522,500
Operating expenses	398,063
Operating income	$ 124,437
Other revenues and expenses:
Interest revenue	$ 550
Interest expense	(2,750)	(2,200)
Net income	$ 122,237

Tri-County Carting Corporation Statement of Retained Earnings For the Year Ended December 31, 20-B
Retained earnings, January 1	$ 65,071
Net income	$122,237
Less dividends	(35,200)
Net increase in retained earnings	87,037
Retained earnings, December 31	$152,108

Required:

1.	Prepare a schedule for the calculation of cash generated from operating activities for the year ended December 31, 20-B.
2.	Prepare a statement of cash flow for the year ended December 31, 20-B.