Part 8 - Reporting and Analyzing Cash Flows Question 8.1.A Calculating cash flows (indirect method) Camilerri Point of Sales is a company that sells computer equipment and software for businesses. Camilleri Point of Sales Ltd.'s comparative balance sheet information at December 31, 2020, and 2019, and its income statement for the year ended December 31,2020 are as follows: During 2020, the following transactions occurred: 1. Issued $25,000 of bonds payable at face value. 2. Sold the non-current investment on January 1, 2020, for $21,000, resulting in investment income of $11,000. 3. Sold equipment for $3,000 cash that had originally cost $18,000 and had $12,000 of accumulated depreciation. 4. Purchased equipment for $7,000 cash. 5. $43,000 was paid in dividends during 2020 a. Prepare a statement of cash flows for Camilleri Point of Sales Ltd. for the year ended December 31, 2020, using the indirect method. Question 8.2 Preparing the statement of cash flows (direct method) Refer to the information in Question 8.1. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise. e. Other operating expenses are cash expenses. f. Income taxes are cash expenses