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1.Villa Foods International provides food and beverage services to institutional facilities like school and hospitals. At the end of 2020, the income statement and comparative balance sheet were prepared as shown below.

Villa Foods International Balance Sheet As at December 31
	2020	2019
Assets
Current Assets
Cash	$354,070	$127,800
Accounts Receivable	$231,900	$260,100
Food & Beverage Inventory	$501,700	$456,100
Prepaid Expenses	$24,100	$24,100
Total Current Assets	$1,111,770	$868,100
Long-Term Assets
Land	$0	$23,600
Equipment	$338,400	$338,400
Accumulated Depreciation	$-103,700	$-99,100
Total Long-Term Assets	$234,700	$262,900
Total Assets	$1,346,470	$1,131,000
Liabilities
Current Liabilities
Accounts Payable	$309,000	$325,700
Notes Payable, Current Portion	$33,900	$24,500
Total Current Liabilities	$342,900	$350,200
Notes Payable, Long-Term Portion	$211,800	$198,500
Total Liabilities	$554,700	$548,700
Shareholders' Equity
Common Shares	$296,000	$260,000
Retained Earnings	$495,770	$322,300
Total Shareholders' Equity	$791,770	$582,300
Total Liabilities and Equity	$1,346,470	$1,131,000

Additional Information: During 2020, land was sold for a loss of $3,300. There was no purchase of equipment throughout the year. The company did not pay off any amount of the notes payable.

Villa Foods International Income Statement For the Year Ended December 31, 2020
Revenue	$2,485,000
Cost of Sales	$1,491,000
Gross Profit	$994,000
Operating Expenses
Depreciation Expense	$4,600
Other Operating Expenses	$652,300
Total Operating Expenses	$656,900
Income from Operations	$337,100
Other Income and Expenses
Loss on Sale of Land	$-3,300
Income before Income Tax	$333,800
Income Tax	$116,830
Net Income	$216,970

Create the cash flow statement using the indirect method.

Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.

Villa Foods International Cash Flow Statement For the Year Ended December 31, 2020
Cash Flow from Operating Activities
Net Income	Answer
Adjustments for Non-Cash Items
Depreciation	Answer
Loss on Sale of Land	Answer
Change in Current Assets and Current Liabilities
Decrease in Accounts Receivable	Answer
Increase in Food & Beverage Inventory	Answer
Decrease in Accounts Payable	Answer
Net Cash Provided (Used) by Operating Activities		Answer
Cash Flow from Investing Activities
Sale of Land	Answer
Net Cash Provided (Used) by Investing Activities		Answer
Cash Flow from Financing Activities
Proceeds from Notes Payable	Answer
Payment of Cash Dividend	Answer
Issue of Common Shares	Answer
Net Cash Provided (Used) by Financing Activities		Answer
Net Increase (Decrease) in Cash		Answer
Cash at the Beginning of the Year		Answer
Cash at the End of the Year		Answer

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