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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

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

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