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MARIGOLD INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $337,125 Cost of goods sold 176,500 Gross profit 160,625 Operating expenses 120,600 Operating income 40,025 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 30,625 Income tax expense 6,125 Net income $24,500 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) MARIGOLD INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/2012/31/19 Cash $6,000 $6,900 Accounts receivable 62,400 50,800 Short-term debt investments (available-for-sale) 35,100 18,100 Inventory 40,100 60,400 Prepaid rent 5,100 4,000 Equipment 152,400 131,000 Accumulated depreciation-equipment (34,700) (24,800 ) Copyrights 45,500 49,900 Total assets $311,900 $296,300 Accounts payable $45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100 4,000 Short-term loans payable 8,100 10,000 68,700 Long-term loans payable 59,500 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 56,300 37,700 Total liabilities & stockholders' equity $311,900 $296,300

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