Carla Vista Ltd., which follows ASPE had the following comparative statement of financial position: Carla Vista Ltd. Comparative Statement of Financial Position December 31 2020 Assets 2021 Cash $ 93,480 Accounts receivable 155,040 Inventory 91,200 Prepaid insurance 11,400 Equipment 351,120 Accumulated depreciation-equipment (79,800) Patents 91,200 Total assets $ 713,640 Liabilities and Shareholders' Equity Accounts payable $ 104,880 Interest payable 9,120 Salaries and wages payable 18.240 Income taxes payable 18.240 Long-term note payable 136,800 $ 57,000 116,280 136.800 9,120 296,400 (57.000) 114,000 $ 672,600 $ 91.200 13.680 9,120 22,800 157.320 Liabilities and Shareholders' Equity Accounts payable $ 104,880 Interest payable 9,120 Salaries and wages payable 18,240 Income taxes payable 18,240 Long-term note payable 136.800 Common shares 296,400 Retained earnings 129.960 Total liabilities and shareholders' equity $ 713.640 $ 91,200 13,680 9,120 22,800 157,320 296,400 82,080 $ 672,600 Additional information: 1 2 3. Net income for the fiscal year was $61,560. Equipment that cost $45,600 and was 70% depreciated was sold during 2021, for a gain of $4,560. No patents were purchased or sold during the fiscal year. Carla Vista Ltd. Statement of Cash Flows $ Adjustments to reconcile net income to net cash provided by operating activities: $ V Question 39 of 45 I