Current Attempt in Progress The financial statements of Carla Vista Ltd., a private company reporting under ASPE, follow: CARLA VISTA LTD. Balance Sheet December 31 Assets 2021 Cash $9,007 Short-term notes receivable 12,650 Accounts receivable 29,800 Inventory 31,300 Property, plant, and equipment 71,900 Accumulated depreciation (31,800) Total assets $122,857 Liabilities and Shareholders' Equity Accounts payable $26,800 Income tax payable 3,900 Notes payable 13,400 Common shares 24,400 Retained earnings 54,357 Total liabilities and shareholders' equity $122,857 2020 $12,300 21,950 15,800 26,800 78,800 (26,300) $129,350 $43,400 19,900 10,400 24,400 31,250 $129,350 $282,800 192,900 89,900 CARLA VISTA LTD. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $36,450 Loss on sale of equipment 2.450 Profit from operations Other revenues and expenses Interest revenue $(1,460) Interest expense 2,450 Profit before income tax Income tax expense Profit 38,900 51,000 990 50,010 16,003 $34,007 Additional information: 1. Short-term notes receivable are loans to other companies. During the year, the company collected the outstanding balance at December 31, 2020, and made new loans in the amount of $12,650. Equipment was sold during the year. This equipment cost $17,300 originally and had a carrying amount of $9,850 at the 2. time of sale. 3. Equipment costing $10,400 was purchased in exchange for a $10,400 note payable. 4. Depreciation expense is included in operating expenses. 5. Accounts receivable are from the sale of merchandise on credit. 6. Accounts payable relate to the purchase of merchandise on credit. CARLA VISTA LTD. Cash Flow Statement-Indirect Method $ Adjustments to reconcile profit to $ $ $ $ $ Note: Equipment costing $ was purchased by issuing a note payable