The comparative statement of financial position and statement of comprehensive income of QRS Company on December 31, 2019 are shown below:

Additional information:

Equipment with carrying amount of 240,000 was sold for 200,000 resulting to a loss on sale of 40,000.

Acquisition of equipment for cash amounted to 800,000.

Owner drawings totalled 90,000.

Requirement:

Prepare the statement of cash flows using the pro-forma statement provided below. Be sure to provide a proper heading for the statement.

QRS Company Statement of Financial Position As of December 31, 2019 ASSETS Cash and cash equivalents Trade and other receivables Inventory Prepaid assets Total current assets 2019 2018 440,000 200,000 130,000 120,000 120,000 480,000 40,000 160,000 730,000 960,000 Property, plant & equipment Total noncurrent assets 760,000 440,000 760,000 440,000 TOTAL ASSETS 1,490,000 1,400,000 LIABILITIES Trade and other payables 620,000 560,000 EQUITY Owner's capital 870,000 840,000 TOTAL LIABILITIES & EQUITY 1.490,000 1,400,000 QRS Company Statement of Comprehensive Income For the year ended December 31, 2019 Sales 1,000,000 Cost of sales (600,000) GROSS PROFIT 400,000 Rent income 150,000 Depreciation expense (240,000) Insurance expense (120,000) Bad debts expense (30,000) Loss on sale of equipment (40,000) PROFIT FOR THE YEAR 120,000 Other comprehensive income COMPREHENSIVE INCOME FOR THE YR. 120,000 PRO-FORMA STATEMENT Heading Cash flows from operating activities: PROFIT FOR THE YEAR Non-cash items: Depreciation Loss on sale of equipment Total Changes in operating assets & liabilities: Increase in Trade and other receivables Decrease in inventory Decrease in prepaid assets Increase in Trade and other payables Net cash from operating activities Cash flows from investing activities: Cash proceeds from sale of equipment Cash paid for the acquisition of equipment Net cash used in investing activities Cash flows from financing activities: Cash payments to owner Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending