CULLUMBER, INC. Statement of Income Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investments $13,000 Interest expense (4,780) Income before income tax Income tax expense Net income $536,550 188,700 347,850 116,420 231,430 8,220 239,650 40.000 $199.650 Additional information regarding 2021 1. 2. 3. Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $87.000 was purchased for $20 800 cash and a $66.200 long-term bank loan payable Old equipment having an original cost of $58,500 was sold for $1.500. Accounts payable relate to inventory suppliers Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46,600 of depreciation expense and a $3.100 loss on disposal of equipment S. 6. 7 7. 8 Operating expenses include $46,600 of depreciation expense and a $3,100 loss on disposal of equipment Common shares were issued for $42,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. (a) Prepare the statement of cash flows, us the indirect method. (Show amounts that decrease cash flow with either a - signeg.-15,000 or in parenthesis eg. (15,000)) CULLUMBER, INC. Statement of Cash Flows $ Adjustments to reconcile net income to $ C > Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ paying $20.800 cash and issuing a $66,200 bank loan payable. by