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At December 31, 2022, the following data for Washington Company were available: Statement of Income Information: Sales Cost of goods sold Depreciation expense, plant Depreciation

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At December 31, 2022, the following data for Washington Company were available: Statement of Income Information: Sales Cost of goods sold Depreciation expense, plant Depreciation expense, equipment Patent amortization Remaining expenses Loss on sale of equipment Income tax expense Gain on sale of long-term investment Net income (loss) $450,000 (275,000) (15,000) (10,000) (5,000) (100,000) (5,000) (20,000) 40,000 $ 60.000 Statement of Financial Position Information: December 31 2021 2022 Debits Cash 20,000 55,000 Accounts receivable (net) 45,000 60,000 Merchandise inventory 40,000 25,000 Long-term investments 10,000 0 Plant 150,000 150,000 Equipment 100,000 110,000 Land 50,000 200,000 Patents 40,000 35,000 $455.000 $635.000 Credits Accumulated depreciation - plant 35,000 50,000 Accumulated depreciation - equipment 50,000 40,000 Accounts payable 40,000 10,000 Interest payable 5,000 0 Notes payable, long term 50,000 95,000 Common stock, no par value 250,000 375,000 Retained earnings 25,000 65,000 $455.000 $635.000 Other additional information: a. b. The equipment which was sold was 50% depreciated and had a book value of $20,000 (assume no salvage value). Purchased land that cost $50,000; this was a part cash transaction. The remaining balance was covered by a long-term note. Paid $20,000 to retire long-term note payable at maturity. c. d. Sold common stock for $50,000. e. Purchased equipment costing S50,000; paid half in cash, balance due in three years interest- bearing note). f. Issued shares of common stock, market value of $75,000, for land that cost $100,000, the balance paid in cash. g Declared dividends of $20,000 during the year. REQUIRED: 1. Prepare a Statement of Cash Flows in GOOD FORM using the direct method to prepare the operating activities section. 2. Prepare a reconciliation of net income to cash flows from operations (indirect method) 3. Prepare a schedule of significant non-cash investing and financing activities. a

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