Required:

1. Prepare a statement of cash flows using the INDIRECT method. 25 marks
2. Prepare CFO using the DIRECT method. 12 marks

The financial records of Cooper Works showed the following information related to B/S accounts and 1/s. Balance Sheet at End of Year 2019 2020 Debits Cash $ 2,000 $ 2,200 A/R 3,800 4,800 Inventory 10,400 10,000+ Prepaid expenses 600 800 0 LT - investments Buildings Machinery Patents 2,000 18,000 8,000 1,000 $45,800 24,000 12,400 800 $55,000 Credits A/P ST - N/P (operating) Accrued wages $ 2,400 1,800 600 $ 1,600 2,600 400 Acc. Depreciation LT - N/P C/S 8,000 6,000 24,000 3,000 $45,800 7,800 7,000 30,000 5,600 $55,000 R/E Income Statement for the Year Revenues and gains CGS Salaries expense Interest expense Other expenses and losses NI $24,400 (8,400) (6,000) (1,600) (3,200) $5,200 Additional data for 2020: 1. Acquired machinery costing $3,000; paid 1/3 in cash and issued a 5-year, interest-bearing note for the balance. II. Acquired machinery costing $5,000 by issuing C/S. III. Made addition to building costing $6,000, paid cash. IV. Paid a $1,000 LT-note by issuing C/S. V. Sold investment for $2,400 cash. VI. Paid cash dividends. VII. Depreciation recorded on buildings and machinery, $1,600. VIII. Disposed for $1,400 old machinery that originally cost $3,600 and that was 12 depreciated. IX. Proceeds from the ST-N/P were used to purchase inventory. ===