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Question - Birch Corporation's calendar year-end 2019 and 2020 balance sheets showed the following items:
2020
2019
Cash
27,000
21,000
Account receivable
43,000
49,000
Merchandise inventory
113,000
97,000
Equipment
96,000
81,000
Acc Dep - Equipment
25,000
16,000
Common shares
135,000
Retained earnings
119,000
Additional information about the corporation's activities during 2020 are:
Sales 342,000
COGS 185,000
Gross margin 157,000
Operating expenses:
Depreciation 9,000
Other expenses 108,000
Total operating expenses 117,000
Net income 40.000
No equipment was sold during the year.
Required - Prepare a statement of cash flows for 2020 using the indirect method.
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