Wendy Corporation's recent comparative balance sheet and income statement follow: 2019 2020 $84,000 95,200 56,000 $120,400 16,800 117,600 84,000 56,000 330,400 15,120 39 200 $779,520 336,000 16,800 39,200 $622 200 $ 67,200 Assets Cash and cash equivalents Investments, short-term Accounts receivable (net) Merchandise inventory Investments, long-term Plant assets, net Patents Other assets Total assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock, par $10 Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income Statement for Year Ended December 31 Sales revenue Cost of goods sold Depreciation expense Patent amortization Other operating expenses Net income 224,000 196,000 $123,200 48,720 112,000 224,000 25,200 246,400 $779.520 140,000 $627.200 2020 $582,400 (308,000) (44,800) (1,680) 199 120 $128.800 Additional information for 2020: 1. Retired bonds paying $112,000 cash. 2. Bought long-term debt investment in securities, $56,000 cash. 3. Purchased short-term investment in securities (not held in a trading account). $16,800 cash. 4. Issued capital stock, $2,800 shares at $19 cash per share. Required [Show all the calculations to receive full points): 1. Prepare a statement of cash flows assuming the direct method in presenting cash flows from operating activities. Assume there is no bad debt expense (26 points] 2. Provide your comments on the cash flow statement. [6 points)