Gross Profit Double Flop Inc.'s balance sheet information and income statement follow. Double Flop Inc. Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Operating Expenses: 895,240 537.150 358,090 Depreciation 16,000 expense Other expenses 169.530 Total Operating expenses Profit from operations Loss on sale of equipment Profit Double Flop Inc. Comparative Balance Sheet Information 185,500 172,590 8,000 180,590 Dec 31 2021 2020 Cash $64,500 $58,450 Accounts receivable 59,875 55,465 Merchandise inventory 93,400 96,300 Equipment 176,500 164,500 Accumulated depreciation 86,500 83,200 Accounts payable 45,600 39,850 Accrued liabilities 5,975 6,345 Notes payable 65,600 89,000 Common shares 95,000 72,000 Retained earnings 95,600 84,320 Additional information regarding Double Flop Inc.'s activities during 2021: 1. Equipment with an original cost of $42,000 is sold. 2. Equipment is purchased by paying cash of $24,000 and signing a long-term note payable for the balance. 3. Reduced a long-term note payable by making a payment. 4. Issued 3,000 common shares. 5. Declared and paid cash dividends. Required 1. Prepare a statement of cash flows for 2021 that reports the cash inflows and outflows from operating activities according to the indirect method, investing activities and financing activities. (23 marks) 2. Prepare a note describing non-cash investing and financing activities. (1 mark) 3. Prepare T-accounts to reconcile the opening and closing balances of the following accounts: PP&E, Accumulated Depreciation, Retained Earnings, Notes Payable and Common Shares. (14 marks) 4. Show your calculation to determine the proceeds on sale of equipment. (2 marks)