Lax Unleashed, Inc. Balance Sheet As of December 31 Assets 2021 2020 Cash 7,450 5,000 Accounts Receivable 2,500 2,200 Inventory 4,000 3,000 Prepaid Rent 150 500 PPE 14,500 12,000 Accumulated Dep (6,100) (4,500) Total Assets 22,500 18,200 Liabilities and Equity Accounts Payable 1,400 1,100 Interest Payable 100 200 Unearned Rent Revenue 800 600 Taxes Payable 550 800 Note Payable Long Term 5,000 Common Stock 10,000 10,000 Retained Earnings 4,650 5,500 Total Liabilities and Equity 22,500 18,200 Lax Unleashed, Inc. Income Statement For the Year Ending December 31, 2021 Sales Revenue 25,000 Cost of Goods Sold (7.200) Gross Profit 17,800 Rent Expense (800) General and Admin Expenses (1.500) Depreciation (3,000) Total Operating Expenses (5.300) Operating Income 12.500 Rent Revenue 1,000 Gain on Sale 2,000 Interest Expense Income before taxes Tax Expense (200) 15,300 (2.500) 12.800 Net Income Additional Information During the year, Lax purchased equipment and paid cash for it Equipment with a book value of $1,500 was sold in 2021. All purchases and sales of inventory were on account Prepare a Statement of Cash Flow for Lax Unleashed, Inc. for 2021 using the direct method Also prepare a reconciliation of Net Income to Cash Flow from Operating Activities