CULLUMBER LTD. Statement of Financial Position (partial) December 31 2021 2020 Current assets Accounts receivable $7,800 $11,800 Inventory 5,600 4,200 Prepaid expenses 4,000 2,600 Current liabilities 3,500 2,800 Accounts payable 1,200 800 Income tax payable 2,500 1,000 Property tax payable 5,400 10,000 Bank loan payable-current portion CULLUMBER LTD. Statement of Income Year Ended December 31, 2021 Statement of Income Year Ended December 31, 2021 Sales $195.000 Cost of goods sold 113,000 Gross profit 32,000 Operating expenses 60.000 Income from operations 22.000 Interest expense 1.700 Income before income tax 20,300 Income tax expense 3,900 Net income $16,400 Additional information: 1. The bank loan was received in the past to finance the purchase of equipment 2 Operating expenses included depreciation expense of $11.500 and a loss of $5,600 on the disposal of equipment Prepare the operating activities section of the statement of cash flows, using the direct method PUFFY LTD. Statement of Cash Flows Year Ended December 31, 2021 v Cash flows from operating activities Cash receipts from customers $ Cash payments Purchase of equipment $ > Increase in merchandise inventory Increase in prepaid expenses For income tax $ Net cash provided by operating activities