Hala Company Comparative Statement of Financial Position 2021 2020 Assets: $ $ Noncurrent Assets: Land Equipment Accumulated depreciation Total non-current assets 18,000 70,000 (20,000) 68,000 40,000 60,000 (13,000) 87,000 Current Assets: Prepaid insurance Trade receivable (net) Cash Total current Assets Total Assets 25,000 70,000 36,000 131,000 199,000 17,000 60,000 31,000 108,000 195,000 Shareholder's Equity: Share Capital - ordinary shares Retained earnings Total Shareholder's Equity 140,000 21,000 161,000 115,000 55,000 170,000 27,000 19,000 Liabilities: Non-current liabilities: Bonds payable current liabilities: Accounts payable Total liabilities Total shareholders' equity & liabilities 11,000 38,000 199,000 6,000 25,000 195,000 Additional information: 1. Net loss for 2021 is $20,000. 2. Cash dividends of $14,000 were declared and paid in 2021. 3. Land was sold for cash at a loss of $4,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was a sold for $5,000 cash. 5. $22,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for ordinary shares. The fair value of the shares at the time of the exchange was $25,000. Instructions (A)-Prepare a statement of cash flows for the year ended 2021, using the indirect method. (24 marks) (B)- Calculate and interpret two long term solvency: debt & gearing ratios. (6 marks)