Use the following financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2020 using the indirect method. Kris Kringle, Inc. Balance Sheets At December 31 Assets: 2020 2019 Cash $184,525 $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 Liabilities: Accounts payable Income taxes payable Notes payable (long term) $621,205 $427,480 $55,270 $45,450 10,320 12,240 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 40,000 243.415 100.590 Retained earnings Total equity $426.415 $290,590 Total liabilities and equity $621.205 $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 Income before taxes (5.700) 122,100 Income taxes expense 30.525 Net income $91.575 Other gains (losses): Loss on sale of building (5.700) Income before taxes 122,100 Income taxes expense Net income 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. 30.525 $91.575