Required: Prepare an indirect statement of Cash Flows For Year Ended December 31, 2020
The comparative balance sheets of Outflame Inc. at the beginning and end of the year 2020 are a follows:
	Dec 31st	January 1st
Cash	$816,400	$795,000
Accounts Receivable	422,000	390,000
Inventory	4,300,000	4,000,000
Property, Plant and Equipment	600,000	575,000
Accumulated Depreciation	(465,000)	(400,000)
Marketable Securities	1,550,000	1,250,000
Loan Receivable	75,000	125,000
Total Assets	$7,298,400	$6,735,000
Accounts Payable	$246,400	$230,000
Income Taxes Payable	322,200	56,000
Dividends Payable		20,000
Lease Liability	1,560,000	1,755,000
Common Stock	300,000	300,000
Capital in Excess of Par	590,000	590,000
Retained Earnings	4,279,800	3,784,000
Total Liabilities and Stockholders Equity	$7,298,400	$6,735,000
Outflame Inc.
Income Statement
For Year Ended December 31, 2020
Sales	$5,500,000
Cost of Goods Sold	4,375,000
Gross Profit	1,125,000
Depreciation Expense	65,000
Administrative Expense	52,000
Earnings Before Interest and Taxes	1,008,000
Interest Expense	190,000
Earnings Before Taxes	818,000
Taxes	322,200
Net Income	$495,800