Cash Flow Statement 1. Using the data below, prepare a statement of cash flows (indirect method) for Colors Inc. for De year ended December 31, 2020: The comparative balance sheets of Colors Inc. at the beginning and end of the year 2020 are a follows: Dec 31st January 1st Cash $600,000 $320,000 Accounts Receivable 332,000 300,000 Inventory 4,100,000 4,100,000 Property, Plant and Equipment 500,000 450,000 Accumulated Depreciation (325,000) (300,000) Marketable Securities 1,250,000 1,000,000 Loan Receivable 100,000 Total Assets $6,457,000 $5,970,000 Accounts Payable $180,000 $140,000 Income Taxes Payable 45,000 46,000 Dividends Payable 10,000 Lease Liability 1,300,000 1,500,000 Common Stock 400,000 400,000 Capital in Excess of Par 1,500,000 1,500,000 Retained Earnings 3,032,000 2,374,000 Total Liabilities and Stockholders Equity $6,457,000 $5,970,000Colors Inc. Income Statement For Year Ended December 31, 2020 Sales $4,000,000 Cost of Good Sold 2.858,400 Gross Profit 1.141.600 Depreciation Expense 25,000 Administrative Expense 50,000 Earnings Before Interest and Taxes 1,066,600 Interest Expense 130.000 Earnings Before Taxes 936,600 Taxes 278,600 Net Income $658,000