The controller of Star Corporation has provided you with the following information:

Income Statement For the Year Ended December 31, 2020

Sales Revenue................................................................................ $620,000

Cost of goods sold......................................................................... 345,000

Salaries expense ............................................................................ 50,000

Depreciation expense equipment 5,300

Interest expense........................................................................... 8,000

Bad debt expense.......................................................................... 1,250

Loss on sale of equipment............................................................. 1,100

Miscellaneous expenses................................................................ 900

Income taxes................................................................................... 72,958

Net income..................................................................................... $135,492

Nebula Corporation Comparative Account Information Relating to Operations

For the Year Ended December 31, 2020

	2020	2019
Accounts receivable	56,000	40,000
Prepaid insurance	5000	6000
Equipment	103000	112500
Accumulated Depreciation	11700	13800
Land	56000	36000
Accounts payable	59000	47000
Interest payable	600	1500
Income taxes payable	4200	6000
Unearned revenue	20000	14000

Additional information: Equipment whose original cost was $24,000 was sold in 2020 The allowance for doubtful accounts was $1,550 and $1,700 as of December 31, 2019 and 2020 respectively Shares with a fair market value of $2,200 were issued in exchange for land.

Required: Prepare the cash flow of operations using the direct method. (4.5 marks) Prepare the cash from investing section of the cash flow statement. (3.5 marks)