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The condensed financial statements of Stauttner, Inc. appear below: STAUTTNER, INC. Statement of Financial Position December 31 Assets 2020 2019 $46,800 $80,437 74,100 136,870 70,680

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The condensed financial statements of Stauttner, Inc. appear below: STAUTTNER, INC. Statement of Financial Position December 31 Assets 2020 2019 $46,800 $80,437 74,100 136,870 70,680 141,020 Cash Accounts receivable Inventories Prepaid expenses Property, plant, and equipment Accumulated depreciation Intangible assets 7,410 7,070 273,600 279,300 (84,930) (82,080) 61,770 52,440 $554,957 $509,530 $53,350 $46,740 19,380 17,670 Liabilities and Shareholders' Equity Accounts payable Wages payable Income taxes payable Bonds payable Common shares Retained earnings 1,430 2,000 108,300 125,400 199,500 199,500 172.997 118,220 $554,957 $509,530 STAUTTNER, INC. Statement of Income Year Ended December 31, 2020 Sales $624,660 Cost of goods sold 393,300 Gross profit 231,360 Operating expenses $43,890 Depreciation expense 53,010 Loss on sale of equipment 8,150 105,050 Profit from operations 126,310 Less: Interest expense 3,110 Profit before income tax 123,200 Income tax expense 36,960 Net income $86,240 Additional information: 1. 2. 3. New equipment costing $80,940 was purchased for cash during the year. The increase in intangible assets is related to legal fees incurred to trademark new packaging designs. Accounts payable relate only to merchandise creditors. Operating expenses included wages expense of $36,480. Interest expense was paid in cash during the year. . 5. Prepare a statement of cash flows for Stauttner Inc. using the indirect method. Assume Stauttner follows IFRS and has chosen to classify interest paid and collected as operating activities and dividends received as operating activities while dividends paid are financing activities. (Show amounts that decrease cash flow with either a-signeg.-15,000 or in parenthesis eg (15.000.) STAUTTNER, INC. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2020 STAUTTNER, INC. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2020 Adjustments to reconcile net profitto

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