The Warehouse The Warehouse Comparative Statement of financial positions as at 31 December 2019 Statement of Cash Flows 2019 2018 Assets For the year ended 31 December 2019 Cash $1,885 $2,875 Accounts receivable 44,650 29,250 Merchandise inventory 60,950 51,325 Investments (long term) 40,300 43.500 Property, plant, and equipment 125,000 112,500 Accumulated depreciation (24.750) (20,000) Total assets $248,035 $219,450 Liabilities and Equity Accounts payable $26.350 $24, 140 Income tax payable 3.635 0 Accrued expenses 6,050 9,415 Share capital 125,000 125,000 Retained earnings 87,000 60.895 Total liabilities and equity $248.035 $219.450 The Warehouse Statement of comprehensive income for the year ended 31 December 2019 Sales $150,000 Less: Cost of sales 49,730 Operating expenses (excluding depreciation) 7,335 Depreciation expense $4,750 Interest expense 2.720 64.535 Income before income taxes 85,465 Income tax expense 3.635 Profit after income tax $ 81.830 Additional data: a. New equipment and machinery were purchased for cash during the year. b. Investments were sold at cost C. d There were not sales of equipment and machinery. Accounts payable pertain to merchandise inventory creditors. Required: Prepare a Statement of cash flows for The warehouse for the year ended 31 December 2019 using the direct method