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MK Co. has the following comparative data. MK Co. Comparative Statement of Financial Position Dec....

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Accounting

MK Co. has the following comparative data. MK Co. Comparative Statement of Financial Position Dec. 31, 2020 Dec. 31, 2019 Assets Equipment 60,000 32,000 Accumulated depreciation-equipment (20,000) (14,000) Long-term investments 0 18,000 Prepaid expenses 6,000 9,000 Inventory 25,000 18,000 Accounts receivable 18,000 14,000 Cash 33,000 10,000 Total assets 122,000 87,000 Equity and Liabilities Share capital-ordinary 40,000 23,000 Retained earnings 28,000 10,000 Bonds payable 37,000 47,000 Accounts payable 17,000 7,000 Total equity and liabilities 122,000 87,000 Additional information: 1. Net income for the year ending December 31, 2020 was 33,000. 2. Cash dividends of 15,000 were declared and paid during the year. 3. Long-term investments that had a cost of 18,000 were sold for 14,000. 4. Sales for 2020 were 120,000. Question: Please prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.

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