Use the following financial statements and additional information to prepare statement of cash flows for the year ended December 31, 2020 using the indirect method. Find the followings

1. Cash flow from Operating Activity

2. Cash flow from Investing Activities

3. Cash from from Financing activities

Kris Kringle, Inc.

Balance Sheets

At December 31

2020 2019

Assets:

Cash $114,525 $65,200

Accounts receivable, net $52,850 $56,750

Merchandise inventory $167,750 $144,850

Prepaid expenses 16,080 12,680

Equipment 280,600 245,600

Accumulated depreciation-Equipment (80,600) (97,600)

Total assets $551,205 $427,480

Liabilities:

Accounts payable $55,270 $45,450

Income taxes payable 10,320 12,240

Notes payable (long term) 59,200 79,200

Total liabilities $124,790 $136,890

Equity:

Common stock 200,000 150,000

Paid-in capital in excess of par 53,000 40,000

Retained earnings 173,415 100,590

Total equity $426,415 $290,590

Total liabilities and equity $551,205 $427,480

Kris Kringle, Inc.

Income Statement

For Year Ended December 31, 2020

Sales $488,000

Cost of goods sold $212,540

Depreciation expense 35,000

Other operating expenses 106,260

Interest expense 6,400 (360,200)

Other gains (losses):

Loss on sale of building (5,700)

Income before taxes 122,100

Income taxes expense 30,525

Net income $91,575

Additional Information

a. Cash dividends declared and paid were $55,000.

b. New equipment is purchased for $150,000 cash.

c. Received $49,550 cash for the sale of equipment.

d. Issued new shares of stock receiving $157,000 cash.