Date: 2021-11.00 Question 1 [30 points Use the Allaroo Inc. financial statements and supplementary Information given below to prepare a statement of cash nows for the year ended December 31, 2014, wing the Indirest method Additional Information: a. Purchased equipment for $42.000 cash b. Sold the long-term investment on January 1, 2014 for $63,000 c Sold equipment for S16.000 cash that had originally cost $35,500 and had $20,000 of accumulated depreciation d. Issued $58,000 of bonds payable at face value e. The short-term investment is a treasury bill that was purchased with maturity in 90 days (one) Statement of Cash Flows Telefone Cash flows from operating activities Adjust to reconcile net income to cash provided by operact x + Allorco Inc Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 170,800 150.000 Short-term investments 101.000 92.000 Accounts receivable 59,300 81 000 Merchandise inventory 230 200 172,000 Long term investment 0 45,000 Equipment 246,500 240,000 Accumulated depreciation (198,000) (180,000) Total assets 609 800 501.000 Cash flows from investing activities Cash flows from financing activities 4C POING 0 112001 0 o Type here to search 2-tytanogle Chrome al lyry.com Accumulated depreciation Total assets (198.000) (180,000) 609.800 601,000 Cash flows from financing activities Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 22,300 16.000 58,000 340.000 173.500 609,800 61,000 31.000 0 340,000 169.000 601.000 Net increase (decrease in cash Cash at beginning of year Cash at end of year Alarco Inc Income Statement For Year Ended December 31, 2014 Sales 680.000 Cost Of Goods Sold 610.000 Depreciation expense 47.000 Other expenses 25,000 (682.000) Gain on sale of long-term investment 17.000 Gain on sale of equipment 9.500 Net income 4,500 Question 2 [25 points] Holden Corp was authorized to issue 400,000 $2.00 preferred shares and 500,000 common shares. During February 2014, the first month of operations, the following selected transactions occurred Ficha 15.000 of the preferred shares were issued for a total of $48.000 cash JAM 4C NE