Use the income statement of Capitol Hill Consulting Ltd. plus these additional data during fiscal year 2020: (Click the icon to view the Income Statement.) Required (Click the icon to view the additional data.) 1. Prepare Capitol Hill Consulting Ltd.'s cash flow statement for the year ended September 30, 2020, using the indirect method. 2. Evaluate Capitol Hill Consulting Ltd.'s cash flows for the year. In your evaluation, mention all three categories of cash flows, and give the reason for your evaluation. - Requirement 1. Prepare Capitol Hill Consulting Ltd.'s cash flow statement for the year ended September 30, 2020, using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Capitol Hill Consulting Ltd. Cash Flow Statement For the Year Ended September 30, 2020 Cash flows from operating activities Data table Net income Add (subtract) items that affect net income and cash flow differently: Amortization expense Decrease in accounts receivable Increase in office supplies Increase in accounts payable Decrease accrued liabilities Net cash inflow from operating activities Cash flows from investing activities Acquisition of computer equipment Cash receipt from sale of land Net cash outflow from investing activities Cash flows from financing activities Cash receipt from issuance of common shares Payment of long-term note payable Dividends paid Net cash outflow from financing activities Net increase in cash Cash balance at beginning of 2020 Cash balance at end of 2020 Non-cash investing and financing activities: More info Capitol Hill Consulting Ltd. Income Statement For the Year Ended September 30, 2020 Revenues Consulting revenue $ 560,000 Expenses Salaries expense $ 304,000 Amortization expense 66,000 Rent expense 18,000 Additional data: a. Acquisition of computer equipment was $238,000. Of this amount, $210,000 was paid in cash and $28,000 by signing a long-term note payable. Capitol Hill Consulting Ltd. sold no computer equipment during fiscal year 2020. b. Cash received from sale of land, $22,000. c. Cash receipts from issuance of common shares, $100,000. d. Payment of long-term note payable, $44,000. e. Payment of dividends, $138,000. f. Change in cash balance, $?. g. From the comparative balance sheet September 30: Capitol Hill Consulting Ltd. Office supplies expense 26,000 Insurance expense 7,000 Interest expense 8,500 40,000 Balance Sheet (partial) September 30, 2020 and 2019 2020 2019 469,500 Current assets Income tax expense 90.500 Cash $ 43,500 $40,000 Net income Accounts receivable Print Done Acquisition of equipment by issuing note payable Requirement 2. Evaluate Capitol Hill Consulting Ltd.'s cash flows for the year. In your evaluation, mention all three categories of cash flows, and give the reason for your evaluation. The cash flow from and it provided funds to acquire the computer equipment, which is found under Office supplies Prepaid expenses Current liabilities 30,000 150,000 18,000 14,000 13,000 14,000 Accounts payable Accrued liabilities $ 68,000 $ 56,000 48,000 58,000 Print Done . The company is fairly strong and has little problem in acquiring by way of notes and common shares, which is found in the section of the cash flow statement.