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The following unclassified statement of financial position relates to Lobo Inc. as at December 31: LOBO INC Comparthe Statement of Financial Pos December 31 Assets

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The following unclassified statement of financial position relates to Lobo Inc. as at December 31: LOBO INC Comparthe Statement of Financial Pos December 31 Assets Cash in bank Accounts receive Inventories, tot Prepaid expenses Land Plant and equipment, et Total assets $111.000 230.000 190.000 34,700 50.000 325.000 $299,202 $ 120,000 303.000 150.000 o 72.500 5909.000 Lisbilities and Shareholders' Equity Accounts payable Accrued libilities Dividends peable Bonds payable, net Common shares Retained earnings Total liabilities and shareholders' equity $100,000 21,700 38.000 103.000 600.000 88,000 $950.700 $40.000 30.000 0 105.000 600,000 134.000 $909.000 Lobo's condensed statement of earnings for the year ended December 31, 2020 showed the following information BUEO INC Statement of Earnings For the Year Ended December 31, 2020 Net les Cost of sales Gross profit Operating expenses, including depreciation of 560,000 Interest expense Grin on sale of land Earnings (los) before income tax Income to recovery Neternings (los) 2:25:12 51.560.000 1925.000 635,000 (564.000) (8.000) 25.00 (12.000) Additional information: a) The land that was sold during the year had an original cost of $12,500 b) Equipment was acquired in 2020, and no disposals were made during the year. Required: 1. Prepare, in good form, the operating activities section of the statement of cash flows for the year ended December 31, 2020. Use the indirect method and show all relevant calculations. Do NOT prepare a complete statement of cash flows. (6 marks) 2. Calculate the amount of cash payments to suppliers of merchandise. The accounts payable relate only to purchases of merchandise for sale. (3 marks) 3. Prepare the investing activities section of the statement of cash flows for the year 2020. (4 marks)

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