The 2020 income statement and comparative balance sheet of Stellar Design Ltd. follow Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Stellar 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. c Income Statement nt in Income Statement For the Year Ended December 31, 2020 di Revenues Sales revenue e Interest revenue Total revenues plant an $ 273,000 27,000 subtr 300,000 Expenses Cost of goods sold $ 90,000 Salaries expense 37,000 Amortization expense 5,200 Other operating expenses 16,000 Interest expense 26,000 27,800 Income tax expense 202,000 Total expenses $ 98,000 Net income Print Done bal ng t i Balance Sheet Stellar Design Ltd. Balance Sheet December 31, 2020 and 2019 2020 2019 - ches Current assets Cash and cash equivalents 8,000 $ 7,100 Accounts receivable 43,000 38,000 Interest receivable 2,900 860 Inventory Prepaid expenses Plant and equipment, net Land Total assets Current liabilities Accounts navabl $ 287,600 $247,360 30 000 9 28.300 33,600 75,000 4,100 3,400 79,000 59,000 117,000 64,000 Print Done ? g 2020. During t Land (Use parenthes 7. Total assets Current liabilities Accounts payable Interest payable Salaries payable Other accrued liabilities Income tax payable Long-term liabilities Notes payable Shareholders' equity Common shares Retained earnings Total liabilities and shareholders' equity 117,000 64,000 $ 287,600 $ 247,360 $ 39,000 $ 36,000 S 6,200 7,300 3,100 7,400 15,000 20,000 10,500 8,500 75,000 95,000 78,000 38,000 60,800 35,160 287,600 $247,360 Print Done Stellar Design Ltd. Cash Flow Statement For the Year Ended December 31, 2020 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 Increase in prepaid expenses Enter any number in the edit fields and then continue to the next question. Increase in accounts receivable Increase in interest receivable Decrease in inventory 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 Enter any number in the edit fields and then continue to the next question. Acquisition of land Acquisition of equipment 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, January 1, 2020 Cash and cash equivalents, December 31, 2020 Requirement 2. Evaluate the cash flow for this company. Stellar Design Ltd.'s 2020 cash flows are Stellar Design Ltd. is investing in overall. Operations provided cash flows, which is the and All are Enter any number in the edit fields and then continue to the next question. signs source of cash for a healthy company