The 2020 comparative balance sheet and income statement of Perfect Supply Corp. follows: (Click the icon...

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The 2020 comparative balance sheet and income statement of Perfect Supply Corp. follows: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Perfect Supplyhad no non-cash investing and financing transactions during 2020During the year, there were no sales of land or equipment, no issuance of notes payable, and no repurchase of share transactions. Requirements 1. Prepare the 2020statement of cash flows by using the direct method. 2. How will what you learned in this problem help you evaluate an investment? Comparative balance sheet Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Plant assets: Land Equipment, net Total assets Current liabilities: Perfect Supply Corp. Comparative Balance Sheets As at December 31, 2020 and 2019 Accounts payable Salary payable December 31 2020 17,700 $ 22,600 86,200 2,400 2019 36,000 $ 2,700 Increase (Decrease) 1,000 $ 22,500 87,600 1,000 88,900 59,000 54,100 49,800 $ 271,900 $ 220,900 $ 27,800 $ 3,400 16,700 100 (1,400) 1,400 29,900 4,300 51,000 8,200 (700) Long-term liabilities: Notes payable Shareholders' equity: Common shares Retained earnings Total liabilities and shareholders' equity 79,000 94,000 88,000 66,200 43,600 5,000 271,900 $ 220,900 $ (15,000) 21,800 38,600 51,000 Income statement Revenues: Sales revenue Expenses: Perfect Supply Corp. Income Statement Year Ended December 31, 2020 Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses Net income $ 70,700 28,200 4,200 10,700 11,400 29,000 $ 228,400 $ 154,200 74,200 X The 2020 comparative balance sheet and income statement of Perfect Supply Corp. follows: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Perfect Supplyhad no non-cash investing and financing transactions during 2020During the year, there were no sales of land or equipment, no issuance of notes payable, and no repurchase of share transactions. Requirements 1. Prepare the 2020statement of cash flows by using the direct method. 2. How will what you learned in this problem help you evaluate an investment? Comparative balance sheet Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Plant assets: Land Equipment, net Total assets Current liabilities: Perfect Supply Corp. Comparative Balance Sheets As at December 31, 2020 and 2019 Accounts payable Salary payable December 31 2020 17,700 $ 22,600 86,200 2,400 2019 36,000 $ 2,700 Increase (Decrease) 1,000 $ 22,500 87,600 1,000 88,900 59,000 54,100 49,800 $ 271,900 $ 220,900 $ 27,800 $ 3,400 16,700 100 (1,400) 1,400 29,900 4,300 51,000 8,200 (700) Long-term liabilities: Notes payable Shareholders' equity: Common shares Retained earnings Total liabilities and shareholders' equity 79,000 94,000 88,000 66,200 43,600 5,000 271,900 $ 220,900 $ (15,000) 21,800 38,600 51,000 Income statement Revenues: Sales revenue Expenses: Perfect Supply Corp. Income Statement Year Ended December 31, 2020 Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses Net income $ 70,700 28,200 4,200 10,700 11,400 29,000 $ 228,400 $ 154,200 74,200 X