XYZ Inc. had the following statement of financial position at December 31, 2019.

XYZ INC.

STATEMENT OF FINANCIAL POSITION

DECEMBER 31, 2019

Investments $64,000 Share capitalordinary $200,000

Plant assets (net) 162,000 Retained earnings 46,400

Land 80,000 Bonds payable 82,000

Accounts receivable 42,400 Accounts payable 60,000

Cash 40,000

Total Assets $388,400 Total liabilities and equity $388,400

During 2020, the following occurred.

1. XYZ liquidated its non-trading equity investment portfolio at a loss of $10,000.

2. A tract of land was purchased for $76,000.

3. An additional $60,000 in ordinary shares were issued at par.

4. Dividends totaling $20,000 were declared and paid to shareholders.

5. Net income for 2020 was $70,000, including $24,000 in depreciation expense.

6. Land was purchased through the issuance of $60,000 in additional bonds.

7. At December 31, 2020, Cash was $140,400, Accounts Receivable was $84,000, and Accounts Payable was $80,000.

Required:

(a) Prepare a statement of cash flows for the year 2020 for XYZ using the indirect method.

(b) Prepare the statement of financial position as it would appear at December 31, 2020.