• Use direct method Statement of Cash Flows for the year ended May 31, 2020.
• Prepare all required supplemental schedules.
• Ignore income taxes

2020 2019 Change $ $ Balance Sheet May 31, Assets Cash Accounts receivable Allowance for doubtful accounts Interest receivable Inventories Prepaid insurance Total Current Assets 28,600 36,000 (2,900) 90,600 165,000 (13,200) 4,000 117,000 23,100 386,500 62,000 129,000 (10,300) 4,000 110,000 20,300 315,000 7,000 2,800 Investment in SeBASS Bonds (AFS) Property, Plant and Equipment, gross Accumulated depreciation Total Assets 406,000 1,768,000 (748,517) $ 1,811,983 398,000 1,670,000 (864,000) $ 1,519,000 8,000 98,000 115,483 292,983 $ $ 87,500 17,000 Liabilities Accounts payable Salaries payable Interest payable Dividends payable Total Current Liabilities Long-term note payable Total Liabilities 76,300 22,200 2,660 1,900 103,060 (11,200) 5,200 2,660 (700) 2,600 107,100 266,000 716,000 819,060 450,000 557,100 Shareholders' Equity Common stock, no par Retained Earnings Accumulated Other Comprehensive Income Treasury stock Total Shareholder's Equity Total Liabilities and Shareholders' Equity 375,000 731,323 6,000 (119,400) 992,923 $ 1,811,983 375,000 691,900 (2,000) (103,000) 961,900 $ 1,519,000 39,423 8,000 (16,400) 292,983 $ 2,256,000 1,393,000 863,000 Danover Fiber Composites Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Salary expense Depreciation expense Bad debt expense Insurance expense Maintenance expense Operating income Other (income) expense: Investment & interest income Loss (gain) on sale of Sales Building 2 Interest expense Net income (loss) $ 372,200 104,517 8,400 36,800 9,000 530,917 332,083 (12,000) 11,660 (340) 332,423 $