UMLAUF COMPANY UMLAUF COMPANY Income Statement Balance Sheets For Year Ended December 31, 2020 December 31, 2019 and 2020 2019 2020 Sales $ 446,100 Assets Cost of goods sold S222,300 Cash $ 43,050 $ 23,925 Other operating expenses... 120,300 Accounts receivable 34,125 39,825 Depreciation expense 25.500 (368.100) Inventory.. 156,000 146,475 78,000 Prepaid expenses. 3.600 1.650 Other gains (losses) Total current assets 236,775 211,875 Loss on sale of equipment 3,300 Equipment.... 135,825 146,700 Loss on retirement of bonds 825 (4.125) Accum. Depreciation Equipment (61.950) 47.550) Income taxes expense 73,875 Total assets $ 310,650 $311.025 Income taxes expense (13.725) Liabilities Net income $ 60,150 Accounts payable. 28,800 33.750 Income taxes payable 5,100 4,425 Dividends' payable 0 4,500 Total current liabilities 33,900 42,675 Bonds payable 0 37,500 Total Liabilities 33,900 80,175 Equity Common stock, $10 per 168,750 168,750 Retained earnings 108.000 62.100 Total liabilities and equity. 310.650 311.025 Additional Information a Equipment costing $ 21,375 with accumulated depreciation of $ 11,100 is sold for cash b. Equipment purchases are for cash c. Accumulated Depreciation is affected by depreciation expense and the sale of equipment d. The balance of Retained Earnings is affected by dividend declarations and net income. All sales are made on credit All inventory purchases are on credit g Accounts Payable balances result from inventory purchases. h. Prepaid expenses relate to other operating exp e Req: Prepare a cash flow statement using indirect method (with complete computation schedules)