Swiss Farm Inc.?s 2020 statement of cash flows appeared as follows:

Swiss Farm Inc.?s balance sheet information is as follows:

An examination of the company?s statements and accounts showed:

a. All accounts have normal balances.

b. All sales were made on credit.

c. All merchandise purchases were on credit.

d. Accounts payable balances resulted from merchandise purchases.

e. Prepaid expenses relate to other operating expenses.

f. Equipment that cost $42,500 and was depreciated $24,000 was sold for cash.

g. Equipment was purchased for cash.

h. The change in the balance of Accumulated Depreciation resulted from depreciation expense and from the sale of equipment.

i. The change in the balance of Retained Earnings resulted from dividend declarations and profit.

j. Cash receipts from customers were $772,800.

k. Cash payments for merchandise inventory amounted to $425,400.

l. Cash payments for other operating expenses were $169,800.

m. Income taxes paid were $32,400.

Required

Prepare Swiss Farm?s single-step income statement for 2020. Show supporting calculations.

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Cash flows from operating activities: Profit. Accounts receivable increase. Inventory decrease. $111,100 ...... $(14,700) 47,600 Prepaid expense increase (4,600) (16,300) Accounts payable decrease. Income taxes payable increase 4,400 Depreciation expense. Loss on disposal of equipment. 12,000 13,400 Gain on bond retirement. (7,700) . 34,100 $145,200 Net cash inflows from operating activities Cash flows from Investing activities: $ 5,100 (33,000) Receipt from sale of office equipment.. Purchase of store equipment. Net cash outflows from investing activities. (27,900) Cash flows from financing activities: $(42,300) (30,000) Payment to retire bonds payable. Payment of dividends. Net cash outflows from financing activities. (72,300) $ 45,000 Net increase in cash. Cash balance at December 31, 2019. Cash balance at December 31, 2020 . 45,400 $ 90,400 December 31 2020 2019 December 31 2020 2019 Cash. Accounts receivable.. Merchandise inventory. Prepaid expenses Equipment. Accumulated depreciation. $ 90,400 $ 45,400 100,200 260,300 4,400 108,600 30,200 Accounts payable. Income taxes payable. Dividends payable . Bonds payable . Common shares. Retained earnings. $ 58,500 $ 74,800 114,900 212,700 10,900 6,500 -0- 7,500 50,000 300,000 49,900 -0- 9,000 99,100 18,200 300,000 138,500