Assignment 3 ACC 210 Accounting Concept II Spring Semester 2022 Question 1 Sully Co. had the following financial data related to the year ended: Dec 31, 2021 $ Dec 31, 2020 $ $ Cash Accounts receivable 72,740 163,880 135,250 64,220 Merchandise inventory 145,000 123,900 Long-term investments 112,000 112,800 Equipment 390,000 184,500 Less: Accumulated depreciation, 120,000 110,000 734.990 539.300 Accounts payable Income taxes payable Bonds payable Common shares Retained earnings Sales (all on credit) Less: Cost of goods sold Gross Profit 166,550 91,000 24,000 23,450 98,500 125,560 295,000 222,000 150,940 77,290 734,990 539,300 413.532 165,000 248,532 Add: Profit on disposal of equipment 2,000 250.532 Less: Operating expenses Depreciation expenses Other operating expenses Interest expenses Net Profit for the year 170,000 56,431 10,185 236,616 13.916 Additional information for your reference: a) There was no gain or loss on the long-term investments sold or the bonds retired. b) Old equipment with an original cost of $125,000 and accumulated depreciation of $60,000 was sold for $67,000. c) New equipment was purchased for $330,500. d) Dividends of $40,266 were paid during the year. Additional shares were issued during the year. 1 REQUIRED Prepare a statement of cash flows for the year ended December 31, 2021, using the INDIRECT METHOD. *********END OF ASSIGNMENT 3********* (100 marks)