C EXERCISE 2 (8.0/30 points) Financial information for Sinjh Ltd. follows: Sinjh Ltd. - Statement of financial position 31 December 2014, 2013 Assets 2014 2013 Equipment $265,000 $242.500 Accumulated depreciation equipment (47,000) (52,000) Long-term investments 140,000 114,000 Prepaid expenses 29,300 26,000 Inventory 112,500 102,850 Accounts receivable 92,800 33,000 Cash 100,350 48,400 Total $692,950 $514,750 Equity and liabilities 2014 2013 Share capital ordinary $220,000 $175,000 Retained earnings 234,450 105,450 Bonds payable 110,000 150,000 Accounts payable 112,000 67,300 Accrued expenses payable 16,500 17,000 Total $692,950 $514,750 Sinjh Ltd. - Income statement 31 December 2014 2014 Sales revenue $392,780 Gain on disposal of plan assets 5,000 $397,780 "n BAL 5,000 $397,780 Gain on disposal of plan assets Less: 135,460 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense 12.410 45,000 Income tax expense 27.280 4,730 Interest expense Net income 224,880 $172,900 Additional information: New equipment costing $80,000 was purchased for cash during the year. Old equuipment havong an original cost of $57,500 and accumulate depreciation of $50,000 was sold for $12,500 cash. Bonds payable matured and were paid off at afce value for cash. Required (show calculations): Prepare a statement of cash flow for the year ended 31 December 2014, using the indirect method