Required: By using direct method, prepare the Statement of Cash Flows for the year 2019.

Question - 1) The financial statements of Casa Company are as follows: Assets CASA COMPANY COMPARATIVE BALANCE SHEETS December 31, 2018 10,700 20,300 42,000 2,000 Cash Accounts receivable Inventories Prepaid Expenses December 31, 2019 45,400 48,300 39,000 14,000 Long Term Investments Plant, Property & Equipment Accumulated Depreciation-P, P&E Total assets 15,000 150,000 (25,000) 215.000 226,500 (37,700) 335,500 Liabilities and Stockholders' Equity Accounts payable Taxes payable Accrued Expenses 26,500 2,500 17,000 17,000 22,500 19,000 Long Term Notes Payable 50,000 70,000 Common stock Retained Earnings 90,000 29,000 130,000 77,000 Total liab. and stockholders' equity 215,000 335,500 CASA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales revenue 200,000 Cost of goods sold (55,500) Gross Profit 144,500 Depreciation expense (12,700) Other operating expenses (27,300) Gain on sale of equipment 8,000 Income before taxes 112,500 Income tax expense (22,500) Net income 90,000 Additional Information: Sold the long term investments for $ 23,000. Purchased machinery costing $ 16,500, paid cash. Purchased machinery and gave a $ 60,000 long-term note-payable. Paid a $ 40,000 long-term note payable by issuing common stock. Paid dividends of $ 42,000. Required: By using direct method, prepare the Statement of Cash Flows for the year 2019