Sunflower Corporation Comparative Balance Sheet As of December 31 Sunflower Corporation Income Statement For the Year Ending December 31, 2020 2020 2019 Assets Cash 900 575 Sales 3,450 Accounts Receivable 875 650 Cost of Goods Sold (2,350) Inventory 800 950 Gross Profit 1,100 Machinery and Equipment 950 850 Administrative Expenses 455 Accumulated Depreciation (600) (585) Depreciation Expense 15 Long-Term Investments 650 710 Operating Income 630 Total Assets 3,575 3,150 Gain on sale of investments 40 Income before Taxes 670 Liabilities and Equity Income Tax Expense Accounts Payable 600 450 Net Income (168) 502 Admin. Expenses Payable 100 125 Notes Payable 700 775 Additional information for 2020: Common Stock 900 800 Dividends declared during the year were paid prior to year end. Retained Earnings 1,275 1,000 Total Liabilities and Equity 3,575 3,150 Some machinery was purchased during the year by issuing common stock. All purchases and sales of inventory were on account HINT: When you calculate the cash received from the sale of the Long-Term Investment, remember that Sales Price Book Value = Gain or Loss. For the Long-Term Investment account, the book value of the asset sold is equal to the amount of decrease in that account ($60). Prepare a Statement of Cash Flow for the year ending December 31, 2020. Prepare the operating section using both the direct and the indirect method.