Question: Experience Statement of Cash Flows using indirect Method The comparative statement of financial position and statement of comprehensive income of Entity A on December 31,

Experience Statement of Cash Flows using indirect Method The comparative statement

of financial position and statement of comprehensive income of Entity A on

Experience Statement of Cash Flows using indirect Method The comparative statement of financial position and statement of comprehensive income of Entity A on December 31, 2020 are shown below: Entity A Statement of Financial Position For the period ended December 31, 2020 ASSETS Cash and cash equivalents Trade and other receivables Inventory Prepaid assets Total Current Assets 2020 P 440,000.00 130,000.00 120,000.00 40,000.00 730,000.00 2019 P200,000.00 120,000.00 480,000.00 160,000.00 960,000.00 440,000.00 Property, plant & equipment Total Noncurrent Assets TOTAL ASSETS 760,000.00 760,000.00 P 1,490,000.00 440,000.00 P 1.400,000.00 P 620,000.00 P 560,000.00 LIABILITIES Trade and other payables EQUITY Owner's capital TOTAL LABILITIES & EQUITY P 870,000.00 P 840,000.00 P 1.490.000.00 P1.400.000,00 Entity A Statement of Comprehensive Income For the period ended December 31, 2020 Sales Cost of sales GROSS PROFIT P 1,000,000.00 1600.000.00 P 400,000.00 Rent Income Depreciation expense Insurance expense Bad debts expense Loss on sale of equipment PROFIT FOR THE YEAR Other comprehensive income COMPREHENSVEINCOME FOR THE YEAR 150,000.00 (240,000.00) (120,000.00) (30,000.00) (40.000.00) 120,000.00 -0- P 120.000.00 . Additional information: Equipment with carrying amount of P240,000 was sold for P200,000 resulting in a loss on sale of P40,000. Acquisition of equipment for cash amounted to P800,000. Owner drawings totaled P90,000. Required: Prepare the statement of cash flows using indirect method. Be sure to provide a proper heading for the statement

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