Required:- Using the information provided, prepare a statement of cash flows (applying the direct method) for the year ended December 31, 2020.

Laura's Fresh Cooking Inc. began operations on January 1, 2019. Laura's prepares gourmet dinners and delivers to customers in fresh coolers, customers put them in the oven and have a meal within 30 minutes. The business seems to be a success! Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. es Laura's Fresh Cooking Inc. Post-Closing Trial Balance December 31 Account 2020 Cash 2019 Receivables $36,800 $19,200 28,700 Merchandise inventory 21,600 26,400 32,100 Property, plant, and equipment 31,200 28,000 Accumulated depreciation 20,000 18,400 Investments 21,600 23,200 Accounts payable 20,000 15, 200 Accrued liabilities 3,200 4,800 Bonds payable 30, 32,000 Common shares 31,200 22,500 Retained earnings 40,000 31, 200 Laura's Fresh Cooking Inc. Income Statement For Year Ended December 31, 2020 Revenues : Sales Cost of goods sold Gross profit Expenses: Other expenses $8,000 Depreciation expense 1,600 Total operating expenses Profit from operations $ 38, 640 16, 160 $ 22, 480 9,600 12.880 Laura's Fresh Cooking Inc. Income Statement For Year Ended December 31, 2020 Revenues: Sales Cost of goods sold Gross profit Expenses: Other expenses $8,000 Depreciation expense 1,600 Total operating expenses Profit from operations Income tax expense Profit $ 38,640 16,160 $ 22,480 9,600 $ 12,880 2,880 $ 10,000 Other information regarding Laura's Fresh Cooking Inc. and its activities during 2020: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. There were no sales of property, plant, and equipment assets during the year. 4. Investments were sold for cash at their original cost. Required: Using the information provided, prepare a statement of cash flows (applying the direct method) for the year ended December 31, 2020. (List any deduction in cash and cash outflows as negative amounts.) LAURA'S FRESH COOKING INC. Statement of Cash Flows