Question 3 (35 minutes, 40 points)

Using the information below, prepare in good form (showing also non cash transactions if any) a Statement of Cash Flows for MAMA Corporation for the year 2020. Information from the December 31, 2020 and 2019 balance sheets of MAMA Corporation are presented below.

	2020	2019
Cash	30,000	50,000
Accounts Receivable, net	410,000	460,000
Inventory	300,000	320,000
Prepaid Expenses	20,000	15,000
Long-Term Investments	50,000	25,000
Land	560,000	300,000
Buildings and Equipment	2,000,000	1,900,000
Accumulated Depreciation	- 800,000	- 770,000
	$ 2,570,000	$ 2,300,000
Accounts Payable	300,000	120,000
Accrued Liabilities	40,000	50,000
Bonds Payable	500,000	800,000
Long-Term Note Payable	150,000	0
Common Stock, $2 par value	200,000	160,000
Paid-in Capital in Excess of Par Value	710,000	550,000
Retained Earnings	670,000	620,000
	$ 2,570,000	$ 2,300,000

Additional information about 2020 transactions and events:

(a) Net income was $110,000.

(b) Depreciation expense on buildings and equipment was $60,000.

(c) Sold equipment with a cost of $50,000 and accumulated depreciation of $30,000 for cash of

$17,000.

(d) Declared and paid cash dividends of $60,000.

(e) Issued a $150,000 long-term note payable for buildings and equipment.

(f) Purchased long-term investments for $25,000.

(g) Paid $300,000 on the bonds payable.

(h) Issued 20,000 shares of $2 par value common stock for $200,000.

(i) Purchased land for $260,000.