2020 $ 40,000 Ivanhoe Ltd. Comparative Statement of Financial Position December 31 Assets 2021 Cash $ 65,600 Accounts receivable 108,800 Inventory 64,000 Prepaid insurance 8.000 Equipment 246,400 Accumulated depreciation equipment (56.000) 81,600 96,000 6,400 208,000 (40,000) Patents 64,000 80,000 $ 472,000 Total assets $ 500,800 Liabilities and Shareholders' Equity Accounts payable $ 73,600 Interest payable 6.400 Salaries and wages payable 12,800 Income taxes payable 12.800 Long-term note payable 96.000 Common shares 208,000 Retained earnings 91,200 Total liabilities and shareholders' equity $ 500,800 $ 64,000 9.600 6,400 16,000 110,400 208,000 57,600 $ 472.000 Additional information: 1 2. Net income for the fiscal year was $43,200. Equipment that cost $ 32,000 and was 70% depreciated was sold during 2021, for a gain of $ 3.200. No patents were purchased or sold during the fiscal year. 3. Prepare the statement of cash flows using the indirect format (Show amounts that decrease cash flow with either a-signeg.-15,000 or in parenthesis e.8. (15,000).) Ivanhoe Ltd. Statement of Cash Flows For the Year Ended December 31, 2021 Rectangula Snip Cash Flows from Operating Activitles Net Income /(Loss) $ 43200 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $ 38400 Gain on Disposal of Equipment -3200 Increase in Accounts Receivable -27200 Decrease in Inventory 32000 Increase in Prepeld Insurance -1600 Increase in Accounts Payable 9800 Increase in Salaries and Wages Payable 5400 Decrease in Income Tax Payable V -3200 Petent Amortization Expense 16000 Decrease in linearest Payable 64000 Net Ceah Provided by Operating Activities 107200 Cash Flows From Investing Acvile Canon Disposal of Equipment 12800 Purchase Equipment -70400 Cash Flow From Investing Acties S -83200 Cash Flows From Financing Acalvities Repayments Notes Payable S -14400 Ceah Didende -76000 Net Ceh Provided by Financing Activities -91200 Net Incre in Cash 25600 Cash Beginning of Year 40000 Cash End of Year 65600