The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below: Sales P 6,100,000 Cost of goods sold Gross...

Prepare ITS OK NOT TO BE OK Company’s 2020 Statement of Cash Flows using the direct

method.

Extracted text: The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below: Sales P 6,100,000 Cost of goods sold Gross profit Gain on sale of equipment 3.700.000 P2,400,000 100,000 Salaries expense -820,000 Insurance expense -380,000 Depreciation expense 220,000 P1,080,000 Profit before interest and income tax 120,000 P960,000 Interest expense Profit before income tax Income tax expense 288,000 P672,000 Profit The following information is also available: Decrease in accounts receivable P120,000 Increase in inventory 280,000 Decrease in accounts payable Increase in salaries payable Increase in prepaid insurance 160,000 100,000 180,000 Decrease in interest payable 30,000 Increase in income tax payable 18,000 Required: Prepare ITS OK NOT TO BE OK Company's 2020 Statement of Cash Flows using the direct method.