Additional information regarding 2021 : 1. Prepaid expenses and property tax payable relate to operating expenses. 2. New equipment costing $80,000 was purchased for $21,900 cash and a $58,100 long-term bank loan payable. 3. Old equipment having an original cost of $61,500 was sold for $1,100. 4. Accounts payable relate to inventory suppliers. 5. Some of the bank loan was repaid during the year. 6. A dividend was paid during the year. 7. Operating expenses include $47,000 of depreciation expense and a $7,600 loss on disposal of equipment. 8. Common shares were issued for $43,000 cash during the year and some common shares were bought back and retired a cost they were originally issued at. Adjustments to reconcile net income to Decrease in estimated inventory returns Decrease in property taxes payable Gain on disposal of equipment To suppliers Decrease in accounts receivable Loss on disposal of equipment Decrease in prepaid expenses Purchase of equipment Proceeds from disposal of equipment Decrease in inventory Sale of land Decrease in refund liability Increase in accounts receivable Increase in property taxes payable Repayment of bank loan payable For interest Increase in accounts payable Purchase of land Net income For operating expenses $ Cash, January 1 Cash, December 31 Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used by financing activities Net cash used by investing activities Net cash used by operating activities Net decrease in cash Net increase in cash $