Financial statements for Discovery Company follow:

DISCOVERY COMPANY
Statement of Financial Position
As of 31 December		20X4				20X3
Assets
Current assets:
Cash		$	48,000			$	41,500
Accounts receivable			1,336,200				1,270,900
Inventory			1,089,700				987,700
Total current assets			2,473,900				2,300,100
Land			908,100				389,100
Plant and equipment			4,566,400				3,136,100
Less: Accumulated depreciation			(2,310,800	)			(2,277,500	)
Patents			241,300				251,600
Total assets		$	5,878,900			$	3,799,400
Liabilities and shareholders equity
Liabilities:
Current liabilities:
Accounts payable		$	752,400			$	820,200
Salaries and wages payable			118,600				109,200
Income tax payable			277,400				257,600
Total current liabilities			1,148,400				1,187,000
Long-term debt			2,877,500				1,543,400
Total liabilities			4,025,900				2,730,400
Shareholders equity:
Common shares, no-par			474,800				466,900
Retained earnings			1,378,200				602,100
Total shareholders equity			1,853,000				1,069,000
Total liabilities and shareholders equity		$	5,878,900			$	3,799,400

DISCOVERY COMPANY
Statement of Comprehensive Income
For the year ended 31 December 20X4
Sales revenue							9,597,600
Less expenses:
Cost of goods sold		$	5,294,200
Selling and administrative expenses			1,413,700
Depreciation and amortization			479,900
Rent expense			38,900
Miscellaneous expenses			368,300
Total expenses							7,595,000
Other revenues and expenses:
Interest expense			89,700
Gain on sale of equipment			(15,600	)
Loss on debt retirement			28,600				102,700
Earnings before income tax							1,899,900
Income tax expense							808,800
Net earnings and comprehensive income						$	1,091,100

Additional information:

1. The company sold equipment that had an original cost of $757,500 and a net book value of $321,200. Other equipment was purchased for cash. Patent amortization was $10,300.
2. Long-term debt with a face value of $1,030,000 was repaid during the year and other long-term debt was issued at a lower interest rate.
3. The company issued shares for land during the period. Other common shares were retired (bought back and cancelled) at book value.
4. Assume unexplained changes in accounts stem from logical transactions.

Required: 1. Prepare the SCF, using the indirect method. Use the two-step method for operations.