Use the following Balance Sheet and Income Statement to calculate your Cash Flow from Operations using the Indirect Method.

YouMUSTshow your steps in transforming Net Income into Cash Flow from Operations. Your first step should be showing Net Income and it should end with Cash Flow from Operations.

Use the following Balance Sheet and Income Statement to calculate your Cash Flow from Operations using the Indirect Method. You MUST show your steps in transforming Net Income into Cash Flow from Operations. Your rst step should be showing Net Income and it should end with Cash Flow from Operations. Balance Sheet 12/31/2020 12/31/2019 Current Assets Cash $49,730 $37,070 Accounts Receivable $15,720 $22,920 Prepaid Rent $15,690 $12,350 Inventory $3,330 $4,100 Total Current Assets $84,470 $76,440 PPE, gross $98,740 $95,950 Accumulated Depreciation ($62,850) ($58,570) PPE, net $35,890 $37,380 Total Assets $120,360 $113,820 Current Liabilities Accounts Payable $3,420 $4,630 Wages Payable $5,920 $5,520 Short-term Notes Payable $10,390 $10,260 Interest Payable $340 $550 Total Current Liabilities $20,070 $20,960 Long-term Notes Payable $19,080 $11,800 Total Liabilities $39,150 $32,760 Stockholders' Equity Common Stock $48,030 $45,170 Retained Earnings $33,180 $35,890 Total Stockholders' Equity $81,210 $81,060 Total Liabilities and Stockholders' $120,360 $113,820 Equity Income Statement 12/31/2020 12/31/2019 Sales $62,310 $56,010 Cost of goods sold ($35,940) ($32,190) Gross Prot $26,370 $23,820 Wages expense ($4,560) ($3.940) Rent Expense ($4,950) ($4.450) Depreciation expense ($2,100) ($1,900) Operating Income $14,760 $13,530 Gain from sale of PPE $900 $750 Interest expense ($282) ($378) Income Before Income Tax $15,378 $13,902 Income tax expense ($4,613) ($4,171) Net income $10,765 $9,731