Question 5 (20 marks)

The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow:

Marine Corporation Income Statement For the Year Ended December 31, 2019
Sales	$ 5,500,000
Less: Cost of Goods Sold	4,100,000
Gross Profit	1,400,000
Less: Selling, General & Administrative Expenses	230,000
Operating profit	1,170,000
Less: Depreciation Expense	160,000
Earnings Before Interest and Taxes	1,010,000
Less: Interest Expense	140,000
Earnings Before Taxes	870,000
Less: Taxes (50%)	435,000
Net Income	$ 435,000

Marine Corporation	Balance Sheet
Assets	2018	2019
Cash	$35,000	$40,000
Marketable Securities	185,000	170,000
Accounts Receivable	220,000	240,000
Inventories	240,000	275,000
Investments	75,000	50,000
Total current assets	$755,000	$775,000
Plant and Equipment	1,100,000	1,450,000
Less Accumulated Amortization	420,000	550,000
Net plant and Equipment	$680,000	$900,000
Total Assets	1,435,000	1,675,000

LIABILITIES AND SHAREHOLDERS EQUITY
Accounts payable	$75,000	$95,000
Notes payable	70,000	30,000
Accrued Expenses	25,000	5,000
Income Taxes Payable	4,000	8,000
Bonds Payable (2016)	700,000	850,000
Common Stock (100,000 shares)	200,000	200,000
Retained Earnings	361,000	487,000
Total Liabilities and Shareholders Equity	$1,435,000	$1,675,000

Required:

Prepare a Statement of Cash Flows for the year ended December 31, 2019 using the Indirect Method showing the operating, investing and financial cashflows up to the net change in cash.