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Question 11 of 12 - /2.5 E December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows. SHAMROCK COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED) Sales revenue $3.820 Expenses Cost of goods sold $1,190 Salaries and benefits 740 Heat, light, and power , 80 Depreciation 90 Property taxes 20 Patent amortization 30 Miscellaneous expenses 10 Interest 30 2,190 Income before income taxes 1,630 Income taxes 815 Net income 815 Retained earnings-Jan. 1, 2020 280 1,095 Stock dividend declared and issued 585 Retained earnings-Dec. 31, 2020 $510 2019 SHAMROCK COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2020 Current assets Cash $330 U.S. Treasury notes (available-for-sale) 10 Accounts receivable 770 Inventory 720 Total current assets 1,830 Long-term assets Land 140 Buildings and equipment 900 Accumulated depreciation-buildings and equipment (210) Patents (less amortization) 110 Total long-term assets 940 Total assets $2,770 $50 50 500 570 1.170 70 590 (120) 140 680 $1,850 $320 $413 42 30 330 330 785 680 Liabilities and Stockholders' Equity ' Current liabilities Accounts payable Income taxes payable Notes payable Total current liabilities Long-term notes payable-due 2022 Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 200 200 985 880 1,275 510 1,785 690 280 970 $2,770 $1,850 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (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).) SHAMROCK COMPANY Statement of Cash Flows ($000 Omitted) $ Toutbool and Media

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