The 2020 comparative balance sheet and income statement of Oswald Electricity Inc. follow: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Oswald Electricity had no non-cash investing and financing transactions during 2020. During the year, there were no sales of land or plant and equipment, no issuances of notes payable, and no repurchase of common shares. Required 1. Prepare the operating section of the 2020 cash flow statement, formatting by the direct method. 2. How would this look different if the indirect method were used for Requirement 1? Requirement 1. Prepare the operating section of the 2020 cash flow statement, formatting by the direct method. (Use parentheses or a minus sign for numbers to be subtracted or for negative cash flows.) Oswald Electricity Inc. Cash Flow Statement For the Year Ended August 31, 2020 Cash flows from operating activities Cash receipts Collections from customers Interest received Total cash receipts Cash payments To suppliers To employees Other operating expenses Interest Income tax Total cash payments Net cash provided by operating activities Requirement 2. How would this look different if the indirect method were used for Requirement 1? The V method would report the above information differently but end up with the same net inflow total. The V method starts with net income and then reconciles it to net cash. i Comparative balance sheet mo Oswald Electricity Inc. Balance Sheet June 30, 2020 and 2019 2020 2019 Assets Current assets Cash and cash equivalents GA 59,000 $ 160,000 Accounts receivable 415,000 441,000 Interest receivable 6,400 10,200 Inventory 993,000 903.000 Prepaid expenses 27,000 30,000 Plant and equipment, net 1,019,000 939,000 417,000 216.000 Land $ 2.936,400 $ 2.699,200 Total assets Liabilities Current liabilities Accounts payable $ 124,000 $ 181,000 Interest payable 75,000 81,000 Salaries payable 73,000 30,000 Lease liabilities 195.000 200,000 Income tax payable 77,000 46,000 Long-term liabilities Notes payable 470,000 650,000 Print Done * Income statement Oswald Electricity Inc. Income Statement For the Year Ended August 31, 2020 Revenues Sales revenue $ 4,390,000 23,000 Interest revenue Total revenues 4.413,000 Expenses Cost of goods sold $ 1.995,000 Salaries expense 814,000 Amortization expense 261,000 Other operating expenses* 501,000 Interest expense 262,000 Income tax expense 187,000 Total expenses 4,020,000 $ 393,000 Net income *Includes lease liability and prepaid expense. Print Done