Cato Ltd's industrial product sales were down in 2020. Fortunately, after investing in a customer relationship management system, it was able to turn its operations around in 2021. Selected financial statements follow: CATO LTD. Statement of Income Year Ended December 31 2021 2020 Sales $1,532,400 $1,143,000 Cost of goods sold 796,848 683,500 Gross profit 735,552 459,500 Operating expenses 257.100 283,700 Income from operations 478,452 175,800 Interest expense 64,300 55,400 Income before income tax 414,152 120,400 Income tax expense 103,538 30,100 Net income $310,614 $90,300 CATO LTD. Statement of Financial Position December 31 Assets 2021 2020 Current assets Cash $31,500 $82,300 Accounts receivable 156,600 109,800 Inventory 116,200 93,600 Total current assets 304.300 285,700 Property, plant, and equipment (net) 1,150,200 1,006,600 Intangible assets 126,000 126,000 Total assets $1,580,500 $1,418,300 Liabilities and Shareholders' Equity Liabilities Current liabilities $67,500 $76,000 Accounts payable Accrued liabilities 15,300 20,700 Bank loan payable 89,100 -0- Mortgage payable-current portion 20,700 20,700 Total current liabilities 192,600 117,400 Mortgage payable 657,900 678.600 Total liabilities 850,500 796.000 Shareholders' equity Common shares, 10,000 shares issued 100,000 100,000 Retained earnings 630,000 522,300 Total shareholders' equity 730,000 622,300 Total liabilities and shareholders' equity $1,580,500 $1,418,300 Additional information for 2021: 1. 2. 3. Assume all sales were credit sales. Cato has no bad debts and no allowance for doubtful accounts. Property, plant, and equipment increased in 2021 by the $313,200 cost of a new customer relationship management system and decreased by additional accumulated depreciation for the year of $169,600. $20,700 of the mortgage was repaid in 2021. Cash dividends paid during the year amounted to $202,914. Selected industry averages for 2021: 4. . 5. 6. Ratio Industry Average Asset turnover 0.8 times Average collection period 28 days Current ratio 2:1 Days in inventory 40 days Debt to total assets 50% Gross profit margin 44.5% Profit margin 15.1% Return on assets 12.5% Times interest earned 5 times After a review of the financial statements, the vice-president is surprised that the cash balance reported on the statement of financial position at year end is not higher, since the company's net income improved, and net cash provided by operating activities was determined to be $396,914. Prepare the investing and financing activities sections of the statement of cash flows for 2021. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) CATO LTD. Statement of Cash Flows-Partial For the Year Ended December 31, 2021 Cash Flows from Operating Activities $