2022-23 Sem 1 P0AII Checkpoint Exercises-Ch16 Nov. 52022 Exercise H1 The Carpet Company's 2000 and 2010 balance sheets included the following items: The Carpet Company's income statement was as follows: CARPET COMPANY Income Statement For the Year Ended December 31, 2010 Required: Prepare the statement of cash flows under the indirect method for the year ended Dec. 31, 2010. Mdditional information includes the following: a. Equipment costing $3,500 was purchased during the year. b. Fully depreciated equipment that cost $500 was discarded and its cost and accumulated depreciation were removed from the accounts. c. Two hundred ordinary shares were sold and issued at $15per share. d. The company declared $4,000 of cash dividends and paid $2,500. Hanagement wants to classify this as a financing activity