Management Accounting Assignment-1 (Due 11:59 pm on Monday, Jan 17) 1. The balance sheet and income statement for Demi's Catering Inc. are presented below. Demi's Balance Sheet at Dec 31 2020 2019 $20,140 17,000 21,000 58,140 $21,000 19,000 15,000 55,000 Current assets Cash Accounts Receivable Food & Beverage Inventory total Current assets long-term assets Land) Equipment) Accumulated Depreciation total long-term assets total assets 110,000 100,000 (40,500) 169.500 $227,640 60,000 140,000 (60.000) 140,000 $195.000 Demi's Catering inc. income statement For the Year ended december 31, 2020 revenue $130,000 Cost of Sales 72,000 gross Profit 58,000 operating expenses Depreciation Exponse 20,500 Other Operating Expenses 9,950 Total Operating Expenses 30.450 income from operations 27,550 other income and expenses Interest Expense (4,050) Gain on Sale of Equipment 1.700 Income before Income Tax Expense 25,200 Income Tax Expense 7.560 net income (loss) $17,640 liabilities Current liabilities Accounts Payable Taxes Payable total Current liabilities Loan Payable) total liabilities $29,000 22.000 51,000 70,000 121,000 $25,000 22.000 47,000 65,000 112,000 85,000 70,000 shareholders' equity Common Shares Retained Earnings (1) total shareholders' equity 21,640 106,640 13,000 83.000 total liabilities and shareholders' $227,640 $195.000 equity additional information ("There was no sale of land. Equipment was purchased for an amount of $80,000. The company did not repay any loan principal during the year. (* The company declared and paid dividends during the year. Prepare Statement of Cash Flows for 2020