20x3 Financial statements for Discovery Company follow: DISCOVERY COMPANY Statement of Financial Position As of 31 December 20X4 Assets Current assets: Cash $ 26,000 Accounts receivable 723,800 Inventory 590,400 $ 22,600 692,100 537,900 Total current assets Land Plant and equipment Less: Accumulated depreciation Patents 1,340,200 492,000 2,474,100 (1,258,000) 130,800 1,252,600 211,900 1,707,900 (1,240,300) 137,000 Total assets $ 3,179,100 $2,069,100 Liabilities and shareholders' equity Liabilities: Current liabilities: Accounts payable Salaries and wages payable Income tax payable $ 407,600 64,200 150,200 $ 446,700 59,400 140,100 Total current liabilities Long-term debt 622,000 1,558,600 646,200 840,200 2,180,600 1,486,400 Total liabilities Shareholders' equity: Common shares, no-par Retained earnings 257,200 741,300 254,200 328,500 Total shareholders' equity 998,500 582,700 Total liabilities and shareholders' equity $3,179,100 $2,069, 100 5,225,200 DISCOVERY COMPANY Statement of Comprehensive Income For the year ended 31 December 20X4 Sales revenue Less expenses: Cost of goods sold $2,882,300 Selling and administrative expenses 769,700 Depreciation and amortization 261,300 Rent expense 21,200 Miscellaneous expenses 200,700 4,135,200 Total expenses Other revenues and expenses: Interest expense Gain on sale of equipment Loss on debt retirement 48,900 (8,500) 15,600 56,000 Earnings before income tax Income tax expense 1,034,000 440,200 Net earnings and comprehensive income $ 593,800 Additional information: a. The company sold equipment that had an original cost of $412,200 and an b. Long-term debt with a face value of $560,000 was repaid during the year ar The company issued shares for land during the period. Other common shar 1. Assume unexplained changes in accounts stem from logical transactions. Required: 1. Prepare the SCF, using the indirect method. Use the two-step method for op DISCOVERY COMPANY Statement of Cash Flows Required: 1. Prepare the SCF, using the indirect method. Use the two-step method for op DISCOVERY COMPANY Statement of Cash Flows For the year ended 31 December 20X4 Operating activities: Adjustments for non-cash items: Total adjustment Changes in net working capital: Investing activities: 2. Prepare the SCF, using the direct method to present cash flows in the operatir DISCOVERY COMPANY Statement of Cash Flows For the year ended 31 December 20X4 Operating activities: Investing activities: Financing activities: Cash balance beginning of the year Cash balance end of the year