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The following information relates to Kemar Company has been a very profitable compariy the last five years. KEMAR COMPANY Comparative Statement of Financial Position 2020

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The following information relates to Kemar Company has been a very profitable compariy the last five years. KEMAR COMPANY Comparative Statement of Financial Position 2020 2019 Assets Long term Investments 731,250 312,500 Computer Equipment 393,750 193,750 Accumulated Depreciation -135,281 -48,438 Plant Assets 1,037,500 537,500 Accumulated Depreciation Plant Assets -473,750 -281,250 Inventories 270,000 165,000 42,750 31,250 Prepaid expenses Accounts receivable 258,750 183,750 Short term Investments 60,000 68,750 Cash 102.937 78,288 Total $2.287.906 $1,241:100 Share Capital -Ordinary Shares 780,000 343,750 Retained Earnings 449,084 226,781 Bonds payable 565,000 325,000 Interest Payable 42,188 18,438 Accrued expenses payable 84,734 64,125 Accounts Payable 366.900 263.006 Liabilities and Stockholders' Equity k Short term Investments Cash Total Share Capital-Ordinary Shares Retained Earnings Bonds payable Interest Payable Accrued expenses payable Accounts Payable Total Liabilities and Stockholders' Equity 60,000 68,750 102,937 78,288 $2,287,906 $1,241,100 780,000 343,750 449,084 226,781 565,000 325,000 42,188 18,438 84,734 64,125 366,900 263,006 $2.287.906 $1.241.100 KEMAR COMPANY Income Statement For the Year Ended December 31, 2020 Sales Less: Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Depreciation Expense-Plant Assets Income taxes Gain on disposal of Short term Investments Interest expense Loss on sale of plant assets Net income $954,230 234,506 86,844 240,000 33.250 -8.000 41,568 4.000 $1,878,701 ($1,586,398) $292.303 of goods sold $954,230 rating expenses (excluding depreciation) 234,506 preciation expense 86,844 preciation Expense-Plant Assets 240,000 ome taxes 33,250 in on disposal of Short term Investments -8,000 erest expense 41,568 4,000 ss on sale of plant assets et income ($1,586,398) $292,303 ditional information: New plant assets and computer equipment were purchased using cash during the year. Old plant assets costing $87,500 were sold for $36,000 cash when book value was $40,00 Bonds with a face value of $90,000 were converted into $90,000 of common stock. A cash dividend of $70,000 was declared and paid during the year. Accounts payable pertain to merchandise purchases. Short term investment sold for cash $ 16,750. During the year $25,000 of Bonds were repaid in cash Required: repare a statement of cash flows for the year ended December 31, 2020 using the indirect meth perating Activities

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