Sunny Technologies Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019, and 2020 is shown below along with some other information.

Other information regarding Sunny and its activities during 2020:

1. Assume all accounts have normal balances.

2. Cash dividends were declared and paid during the year.

3. Plant assets were sold during the year.

4. Plant assets worth $99,200 were purchased during the year by paying cash of $32,000 and issuing a longterm note payable for the balance.

Required

Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2020.

Analysis Component:

a. The Cash account balance for Sunny Technologies Inc. decreased during 2020. Is this necessarily an unfavourable situation? Explain why or why not.

b. Explain the causes of change in Sunny?s cash situation during 2020.

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Lock & Key Inc. Income Statement For Year Ended December 31, 2020 (000s) Lock & Key Inc. Post-Closing Trial Balance (000s) December 31 Revenues: Sales. Cost of goods sold. Gross profit. Expenses: Other expenses. 2020 Account Cash. Receivables. Merchandise inventory.. Property, plant, and equipment. Accumulated depreciation. Accounts payable.. Accrued liabilities. Bonds payable. Common shares. 2019 $2,160 $1,260 1,440 2,280 3,960 1,380 1,080 360 1,800 2,040 2,280 3,300 2,520 780 2,100 2,040 3,720 1,440 660 240 Depreciation expense. Total expenses Loss. 1,440 240 1,680 900 $ 120 3,084 2,136 Retained earnings.