Question 5 (20 marks)

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

Marine Corporation	Balance Sheet
Assets	2018	2019
Cash	$45,000	$50,000
Marketable Securities	175,000	160,000
Accounts Receivable	240,000	220,000
Inventories	230,000	275,000
Investments	70,000	55,000
Total current assets	$760,000	$760,000
Plant and Equipment	1,300,000	1,550,000
Less Accumulated Amortization	450,000	600,000
Net plant and Equipment	$850,000	$950,000
Total Assets	1,610,000	1,710,000

LIABILITIES AND SHAREHOLDERS EQUITY
Accounts payable	$110,000	$85,000
Notes payable	65,000	10,000
Accrued Expenses	30,000	5,000
Income Taxes Payable	5,000	10,000
Bonds Payable (2016)	800,000	900,000
Common Stock (100,000 shares)	200,000	200,000
Retained Earnings	400,000	500,000
Total Liabilities and Shareholders Equity	$1,610,000	$1,710,000

Marine Corporation Income Statement For the Year Ended December 31, 2019
Sales	$ 5,500,000
Less: Cost of Goods Sold	4,200,000
Gross Profit	1,300,000
Less: Selling, General & Administrative Expenses	260,000
Operating profit	1,040,000
Less: Amortization Expense	150,000
Earnings Before Interest and Taxes	890,000
Less: Interest Expense	90,000
Earnings Before Taxes	800,000
Less: Taxes (50%)	400,000
Net Income	$ 400,000

Required:

Prepare a Statement of Cash Flows in good form for the year ended December 31, 2019 using the Indirect Method?