The 2020 income statement and comparative balance sheet of Stellar Design Ltd. follow: E: (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. Income Statement Requirement 1. Prepare the 2020 cash flow statement by the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Stellar Design Ltd. Cash Flow Statement Stellar Design Ltd. Income Statement For the Year Ended June 30, 2020 For the Year Ended June 30, 2020 Revenues Cash flows from operating activities Net income Sales revenue $ 261,000 13,600 Add (subtract) items that affect net income Interest revenue and cash flow differently: Total revenues 274,600 Amortization expense Expenses Cost of goods sold Increase in accounts receivable $ 76,600 Increase in interest receivable Salaries expense 33,000 4,200 Amortization expense Other operating expenses Interest expense 20,000 Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in interest payable Decrease in salaries payable Decrease in other accrued liabilities 26,000 35,000 Income tax expense Total expenses 194,800 $ 79,800 Net income Increase in income tax payable Net cash inflow from operating activities Print Done Balance Sheet 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 pla Required 1. Prepare the 2020 cash flow statement by the indirect method. 2. Evaluate the cash flow for this company. Decrease in other accrued liabilities Stellar Design Ltd. Balance Sheet June 30, 2020 and 2019 2020 2019 Current assets Cash and cash equivalents $ 8,400 $ 6,300 Accounts receivable 47,000 40,000 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 Interest receivable 2,700 880 35,000 Inventory Prepaid expenses Plant and equipment, net 59,000 2,500 3,300 81,000 113,000 61,000 70,000 Land $ 290,400 239,680 Issuance of common shares $ Net cash outflow from financing activities Net increase (decrease) in cash Cash and cash equivalents, July 1, 2019 35,000 $ 32,000 5,000 5,500 Total assets Current liabilities Accounts payable Interest payable Salaries payable Other accrued liabilities Income tax payable Long-term liabilities 4,100 7,800 Cash and cash equivalents, June 30, 2020 23,000 24,000 Requirement 2. Evaluate the cash flow for this company. 10,700 9,300 Stellar Design Ltd.'s 2020 cash flows are overall. Operations provided v cash flows, which is the Stellar Design Ltd. is investing in Vand All are signs. Print Done