Indirect Method - Preparing a Statement of Cash Flows The accounting records of Guci Corp. show the following data for the current year. Balance Sheet, December 31 2019 2020 Difference Cash 5660 $429 $(231) Accounts receivable 1.980 1.320 (660) Merchandise inventory 660 1.980 1.320 Equipment net 11,830 14,520 2,640 Total assets $15.180 518,249 53,069 Accounts payable 51.815 51.584 5(231) Salaries payable 330 165 (165) Bonds payable 3.960 4,620 660 Common stock (no-par) 7.260 7.920 660 Retained earnings 1.815 3.960 2.145 Total liabilities and stockholders equity 515.180 518.249 $3.069 Income Statement For Year Ended December 31, 2020 Revenues 519,800 Cost of goods sold 11,220 Depreciation 2.640 Other expenses 2.541 Net income 53.399 Additional information 1. Equipment was sold for its book value of $2,640. 2. Equipment purchased during the year was $7,920, 3. Cash dividends declared and paid were $1,254. Required 0 O Required Prepare the statement of cash flows for Guci Corp for the year ended December 31, 2020, using the indirect method to present cash flows from operating activities Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Netcome Adjustment Deprecation expense Deone in accounts recebe 0 Increase in merchandise inventory Decrease in accounts payable Decrease in was able Net cash provided by operating activities 0 Cash flows from investing activities Purchase of count 0 Sale of equipment Net cach used by investing activities 0 Cash flows from financing activities hance of bond Day D fo . Godine Net cash provided by financing activities Not incmaso in cast muring 2020 Chry1.2000 Cath December 31, 2020 0 0