The December 31, 2020 comparative balance sheet of Himalayan Inc. carried the following information: Assets Cash Accounts receivable Merchandise inventory Plant & equipment Accumulated depreciation 2020 100,640 $ 233,400 351,000 1,057,000 (245.000 1,497,040 $ 2019 45,000 120,000 304,500 1,050,000 (225,000) 1,294,500 $ Liabilities and Shareholders' Equity Accounts payable Salaries payable Long-term notes payable Common shares Retained earnings 120,000 $ 82,500 426,000 343,140 525,400 1,497,040 $ 140.100 75,000 405,000 330,000 344,400 1,294,500 $ The 2020 Income Statement was as follows: Sales Cost of goods sold Gross profit Wages expense Rent expense Supplies expense Depreciation expense Operating profit Loss on sale of plant asset Profit 2,250,000 1.095,000 1,155,000 375,000 240,000 81,000 30,000 429,000 24.000 405,000 Additional information 1. The following transaction was recorded when plant assets were sold: Dr Accumulated depreciation - Plant assets Dr Cash Dr Loss on sale of plant assets Cr Plant assets 10,000 120,000 24,000 154,000 Dr Accumulated depreciation - Plant assets Dr Cash Dr Loss on sale of plant assets Cr Plant assets 10,000 120,000 24,000 154,000 2. The following transaction was recorded when plant assets were purchased: 161,000 Dr Plant assets Cr Cash Cr Notes payable 90,000 71,000 3. Issuedcommon shares in 2020 # of shares issued Price per share 1,800 7.30 4. Paid total cash dividends during 2020 224,000 Required: 1. Prepare a Cash Flow Statement for Himalayan Inc. for December 30, 2020 using proper format. (65 marks) 2. Cash increased from 2019 to 2020. Using the information from the statement of cash flows you prepare, briefly explain what caused this change