Financial statements for Discovery Company follow: As of 31 December Assets Current assets: DISCOVERY COMPANY Statement of Financial Position 20x4 20X3 Cash Accounts receivable Inventory Land Total current assets Plant and equipment Less: Accumulated depreciation Patents Total assets Liabilities and shareholders' equity Liabilities: Current liabilities: Accounts payable Salaries and wages payable Income tax payable Total current liabilities Long-term debt Total liabilities Shareholders' equity: Common shares, no-par Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 32,000 $ 27,900 890,800 854,500 726,800 664,300 1,649,600 1,546,700 605,600 261,700 3,045,300 (1,552,900) 160,800 $ 3,908,400 2,109,400 (1,531,900) 169,300 $2,555,200 $ 501,700 $ 551,800 79,100 73,300 185,000 172,800 765,800 797,900 1,919,100 1,037,600 2,684,900 1,835,500 316,700 314,000 906,800 405,700 1,223,500 719,700 $ 3,908,400 $2,555,200 Sales revenue DISCOVERY COMPANY Statement of Comprehensive Incone For the year ended 31 December 20x4 Less expenses: Cost of goods sold Selling and administrative expences Depreciation and amortization Rent expense Miscellaneous expenses Total expenses Other revenues and expens Interest expense Gain on sale of equipment Loss on debt retirement Earnings before income tax Income tax expense Net earnings and comprehensive income 6,453,100 $3,559,700 950,500 322,700 26,200 248,000 5,107,200 60,400 (10,400) 19,100 69,100 1,276,900 541,500 $ 733,400 Additional information: a. The company sold equipment that had an original cost of $509,200 and a net book value of $216,000. Other equipment was purchased for cash. Patent amortization was $8.500. b. Long-term debt with a face value of $850,000 was repaid during the year and other long-term debt was issued at a lower interest rate. c. The company issued shares for land during the period. Other common shares were retired (bought back and cancelled) at book value. d. Assume unexplained changes in accounts stem from logical transactions. Prepare the SCF, using the direct method to present cash flows in the operating activities section. (Deductible amounts and Cash outflows should be indicated with minus sign.)