Requirement: Prepare the Statement of Cash Flows. Present it in good format (heading, lines, parenthesis, no abbreviation).

Forever Company showed the following financial statements for 2020: FOREVER COMPANY Statement of Income For the year ended December 31, 2020 Sales 3,850,000 Less: Cost of goods sold 2,270,000 Gross profit 1,580,000 Less: Operating expenses Salaries 580,000 Depreciation 240,000 Doubtful accounts 20,000 Other expenses 270,000 1,110,000 Net profit 470,000 FOREVER COMPANY Statement of Income As of December 31 ASSETS 2020 Cash and cash equivalents 200,000 Accounts receivable 450,000 Allowance for doubtful accounts (50,000) Inventory 840,000 Prepaid expenses 50,000 Property, plant and equipment 2,550,000 Accumulated depreciation (700,000) Goodwill 360,000 Total Assets 3,700,000 LIABILITIES AND EQUITY Accounts payable 300,000 Salaries payable 70,000 Notes payable - bank 0 Share capital 2,150,000 Retained earnings 1,180,000 Total Liabilities and Equity 3,700,000 2019 130,000 410,000 (30,000) 910,000 40,000 2,200,000 (600,000) 360,000 3,420,000 240,000 100,000 250,000 1,950,000 880,000 3,420,000 Additional information: 1. A cash dividend of P170,000 was declared and paid during the year. 2. Equipment of P200,000 with accumulated depreciation of P140,000 was sold for cash at no gain or loss. 3. The net change in the equipment after considering the equipment sold was the result of a cash acquisition. 4. The notes payable-bank matured this year and was accordingly paid in cash. 5. The share capital was issued for cash