Statement of cash flow:

1.Prepare the statement of cash flows using approved accounting standards.

2. Why owner is impressed with this performance.

$ 120 000 $500 000 130 000 2 000 12 000 200 000 100 000 20 000 1 030 000 Beginning cash balance, 1 January 2020 Cash inflows Inventory sales Plant and equipment sales Interest on investments Depreciation Sale of land Injection of equity capital Loan Total cash inflows Cash outflows Inventory purchases Salaries and wages Car purchase Drawings Interest expenses Land purchase Loan Other expenses paid Total cash outflows Cash increase (decrease) Ending cash balance 240 000 100 000 50 000 200 000 20 000 250 000 30 000 70 000 960 000 70 000 $ 190 000