QUESTION:02 Comparative Balance Sheet of R corporation at December 31, are as ASSETS 2019 2020 LIABILITIES 2019 Cash and Cash Equivalent 4,000 5,000 Accounts Payable 8,000 Accounts Receivable 7,000 10,000 Notes Payable 5,000 Inventory 12,000 15,000 Accrued wages 2,000 Accrued wages 3,000 Total Current Assets 23,000 30,000 Total Current Liabilities 18,000 2020 10,000 5,000 3,000 2,000 20,000 Net Fixed Assets 40,000 40,000 Long term Debts Common stock Retained Earnings 20,000 10,000 15,000 63,000 20,000 10,000 20,000 70,000 63,000 70,000 85,000 Statement of income and retained earnings for the year ended December 31, 2020 Net Sales Expenses: Cost of goods sold 50,000 Selling and administrative expenses 15,000 Depreciation 3,000 Interest 2,000 Net Income before Tax Income Tax Net Income (70,000) 15,000 (10,000) 5,000 Required: Prepare a cash flow statement using direct method for the year ended December 31, 2020 sedur Rea