The 2020 income statement and comparative balance sheet of French Design Ltd. follow: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) French Design Ltd. had no non-cash financing and investing transactions during 2020. During the year, there were no sales of land or plant and equipment, and no issuances of notes payable. Required 1. Prepare the 2020 cash flow statement by the indirect method. 2. Evaluate the cash flow for this company. Income Statement Requirement 1. Prepare the 2020 cash flow statement by the indirect method. (Use parentheses or a minus sign French Design Ltd. Cash Flow Statement For the Year Ended July 31, 2020 Cash flows from operating activities French Design Ltd. Income Statement Revenues For the Year Ended July 31, 2020 Sales revenue Interest revenue Net income Add (subtract) items that affect net income and cash flow differently: Amortization expense Increase in accounts receivable Increase in interest receivable Decrease in inventory Increase in prepaid expenses Enter any number in the edit fields and then continue to the next question. Net income $ 269,000 15.000 284,000 Total revenues Expenses Cast of goods sold $ 78,000 Salaries expense 27,800 Amortization expense 4,800 Other operating expenses 28,000 Interest expense 28,000 27,800 Income tax expense 194,400 Total expenses $ 89,600 The 2020 income statement and comparative balance sheet of French Design Ltd. follow: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) French Design Ltd. had no non-cash financing and investing transactions during 2020. During the year, there were no sales of land or plant and equipment, and no issuances of notes payable. Required 1. Prepare the 2020 cash flow statement by the indirect method. 2. Evaluate the cash flow for this company. Increase in prepaid expenses Increase in accounts payable Decrease in interest payable Decrease in salaries payable Decrease in other accrued liabilities Increase in income tax payable Net cash inflow from operating activities Cash flows from Investing activities Acquisition of land Acquisition of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable The 2020 income statement and comparative balance sheet of French Design Ltd. follow: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) French Design Ltd. had no non-cash financing and investing transactions during 2020. During the year, there were no sales of land or plant and equipment, and no issuances of notes payable. Required 1. Prepare the 2020 cash flow statement by the indirect method. 2. Evaluate the cash flow for this company. Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Payment of notes payable Issuance of common shares Net cash outflow from financing activities Net Increase (decrease) in cash Cash and cash equivalents, August 1, 2019 Cash and cash equivalents, July 31, 2020 Requirement 2. Evaluate the cash flow for this company. French Design Ltd.'s 2020 cash flows are French Design Ltd. is investing in overall. Operations provided cash flows, which is the and . All are signs. source of cash for a healthy company. Enter any number in the edit fields and then continue to the next question. Screenshot saved The screenshot was added to your OneDrive. CasDrive The 2020 income statement and comparative balance sheet (Click the icon to view the income statement.) French Design Ltd. had no non-cash financing and investing Required 1. Prepare the 2020 cash flow statement by the indirect me 2. Evaluate the cash flow for this company. Requirement 1. Prepare the 2020 cash flow statement by th French Design Ltd. Cash Flow Statement Balance Sheet French Design Ltd. Balance Sheet July 31, 2020 and 2019 2020 2019 Current assets Cash and cash equivalents $ 7,600 $ 6,500 For the Year Ended July 31, 20 Cash flows from operating activities Net income Add (subtract) items that affect net income and cash flow differently: Amortization expense Increase in accounts receivable Increase in interest receivable Decrease in inventory Prepaid expenses Plant and equipment, net Land Total assets Current liabilities Accounts receivable Interest receivable Inventory 43,000 36,000 3,700 840 37,000 65,000 3,500 2,800 81,000 63,000 117,000 72,000 $ 292,800 $ 246,140 Increase in prepaid expenses Enter any number in the edit fields and then continue to t Accounts payable Interest navable $ 47,000 $ 5.600 44,200 6.300 Print Done - X - hent, and no issuances of notes payable. E The 2020 income statement and comparative balance sheet Balance Sheet (Click the icon to view the income statement.) French Design Ltd. had no non-cash financing and investing Required 1. Prepare the 2020 cash flow statement by the indirect me 2. Evaluate the cash flow for this company. Requirement 1. Prepare the 2020 cash flow statement by th French Design Ltd. Cash Flow Statement Prepaid expenses Plant and equipment, net Land Total assets Current liabilities Accounts payable - hent, and no issuances of notes payable. 3,500 2,800 81,000 63,000 117,000 72,000 $ 292,800 $ 246,140 47,000 $ 44,200 Interest payable 5,600 6,300 For the Year Ended July 31, 20 Salaries payable 4,900 6,600 Cash flows from operating activities Other accrued liabilities 17,000 20,000 Net income Income tax payable 10,500 9,500 Add (subtract) items that affect net income Long-term liabilities and cash flow differently: Amortization expense Increase in accounts receivable Increase in interest receivable Decrease in inventory Increase in prepaid expenses Notes payable Shareholders' equity Common shares Retained earnings 75,000 105,000 82,000 34,700 50,800 19,840 Total liabilities and shareholders' equity Enter any number in the edit fields and then continue to t Print Done $ 292,800 $ 246,140 Screenshot saved The screenshot was added to your OneDrive. OneDrive