Swiss Farm Inc.’s 2023 statement of cash flows appeared as follows:

An examination of the company’s statements and accounts showed:1. All accounts have normal balances.2. All sales were made on credit.3. All merchandise purchases were on credit.4. Accounts payable balances resulted from merchandise purchases.5. Prepaid expenses relate to other operating expenses.6. Equipment that cost $42,500 and was depreciated $24,000 was sold for cash.7. Equipment was purchased for cash.8. The change in the balance of Accumulated Depreciation resulted from depreciation expense and from the sale of equipment.9. The change in the balance of Retained Earnings resulted from dividend declarations and profit.10. Cash receipts from customers were $772,800.11. Cash payments for merchandise inventory amounted to $425,400.12. Cash payments for other operating expenses were $169,800.13. Income taxes paid were $32,400.

RequiredPrepare Swiss Farm’s single-step income statement for 2023. Show supporting calculations.

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Cash flows from operating activities: Profit Accounts receivable increase Inventory decrease Prepaid expense increase Accounts payable decrease Income taxes payable increase Depreciation expense Loss on disposal of equipment Gain on bond retirement Net cash inflows from operating activities Cash flows from investing activities: Receipt from sale of office equipment Purchase of store equipment Net cash outflows from investing activities Cash flows from financing activities: Payment to retire bonds payable Payment of dividends $(14,700) 47,600 (4,600) (16,300) 4,400 12,000 13,400 (7,700) 34,100 $145,200 $ 5,100 (33,000) $(42,300) (30,000) $111,100 108,600 30,200 (27,900) (72,300) Net cash outflows from financing activities Net increase in cash $ 45,000 Cash balance at December 31, 2022 45,400 $ 90,400 Cash balance at December 31, 2023 Swiss Farm Inc.'s balance sheet information is as follows: Cash December 31 2023 2022 $ 90,400 $ 45,400 114,900 100,200 212,700 260,300 Accounts receivable Merchandise inventory Prepaid expenses 9,000 4,400 Equipment 99,100 Accumulated depreciation 18,200 December 31 2023 2022 $ 58,500 $74,800 Accounts payable Income taxes payable 10,900 6,500 Dividends payable -0- 7,500 50,000 -0- Bonds payable Common shares Retained earnings 300,000 300,000 138,500 49,900