Following is the comparative statement of financial position for Grouper Corporation: Grouper Corporation Statement of Financial Position As at December 31 Assets 2021 2020 Cash $601,100 $300,400 Accounts receivable 149,800 175,150 Merchandise inventory 751,700 500,750 Prepaid operating expenses 25,450 30,700 FV-NI investments 350,850 250,850 Equipment 1,875,900 1,800,900 Less: Accumulated depreciation (149,650) (80,000) $3,605,150 $2,978,750 Liabilities and Shareholders' Equity Accounts payable $225,600 $200,850 Income tax payable 25,350 30,700 Bonds payable 101,350 250,400 Common shares 1,400,500 1,200,150 Retained earnings 1,852,350 1,296,650 $3,605,150 $2,978,750 During 2021, Grouper Corporation earned a profit of $680,700. Depreciation expense was $114,300. Equipment was sold at a gain of $20,700. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with eitherX Gain on Disposal of Equipment x x Increase in Accounts Receivable X Loss on Disposal of Equipment Decrease in Income Tax Payable Profit Decrease in Inventory Decrease in Accounts Receivable Decrease in Prepaid Expenses Increase in Inventory X Gain on Disposal of Equipment Increase in Accounts Payable X Increase in Income Tax Payable Decrease in Accounts Payable Depreciation Expense X Increase in Accounts Receivable Increase in Prepaid Expenses x Net Cash Provided by Operating ActivitiesPartial Statement of Cash Flows For the Year Ended December 31, 2021 Operating Activities Profit X Adjustment to reconcile profit to net cash provided by operating activities: Gain on Disposal of Equipment x Increase in Accounts Receivable x Decrease in Inventory x Increase in Prepaid Expenses X Decrease in Accounts Payable x Increase in Accounts Receivable Increase in Income Tax Payable X Net Cash Provided by Operating Activities EX