The balance sheet and income statement of King Limited are as follows: Current Assets Cash Accounts receivable Inventory Prepayments Total current assets King Limited Statement of Financial Position at 31 December 2020 $ 104,000 360,000 460,000 30,000 954,000 2019 $ 180,000 260,000 400,000 50,000 890,000 Non-Current Assets Land Plant and equipment Accumulated depreciation - Plant and equipment Total non-current assets Total assets 1,500,000 1,400,000 (500,000) 1,200,000 1,000,000 (400,000) 2,400,000 3,354,000 1,800,000 2,690,000 Current Liabilities Accounts payable Accrued expenses Income taxes payable Total current liabilities 260,000 136,000 180,000 576,000 296,000 126,000 220,000 642,000 Non-Current Liabilities Long-term bank loan payable Total liabilities 700,000 1,276,000 600,000 1,242,000 Common Stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 1,100,000 978,000 2,078,000 3,354,000 800,000 648,000 1,448,000 2,690,000 King Limited Statement of Profit or Loss For Year Ended 31 December 2020 Sales revenue Cost of goods sold Gross profit $ 2,500,000 1,400,000 1,100,000 Operating expenses Income before interest and taxes Interest expense Income before taxes Income tax expense Net income 300,000 800,000 50,000 750,000 300,000 450,000 Other information for 2020 are as follows: 1. Operating expenses include $100,000 of depreciation. 2. Land was acquired for cash. Plant and equipment were acquired for long-term bank loan payable. Required Prepare a statement of cash flows for the year ended 31 December 2020 using the direct method