183 Exercise 5-7 The beginning and ending balances in each of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2019 Dec. 31, 2020 Cash P260,000 P100,000 Accounts receivable 180.000 360,000 Inventory 400,000 460,000 Prepaid insurance 50.000 30,000 Total current assets P890,000 P950.000 Land P1,200,000 P1,500,000 Plant & equipment 1,000,000 1,400,000 Accumulated depreciation (400,000) (500.000) Total non-current assets P1,800.000 P2,400.000 Total assets P2,690,000 P3,350,000 Accounts payable Acerued operating expenses Interest payable Income taxes payable Total curren: liabilities Bonds payable Common stock Retained earnings P 300,000 200.000 20,000 122.000 P 642.000 600,000 800,000 648,000 P 260,000 132,000 30,000 150.000 P572,000 700.000 1,100,000 978,000 Total liabilities & equity P2,690,000 P3,350,000 The forecast income statement for the Mexico Company for 2020 is presented below: Sales Cost of sales Gross profit Operating expenses Income before interest & tax Interest expense Income before tax Income tax Net income P2,500,000 1,400,000 P1,100,000 300,000 P 800,000 50,000 750,000 300,000 P450,000 REQUIRED: 1. Prepare a forecast cash flow statement for 2020