Michael Company reported the following income statement and comparative balance sheets, along with transaction data for 2021: (Cick the icon to view the income statement.) (Click the icon to view the balance sheet.) (Click the icon to view the transaction dala.) Requirement 1. Prepare Michael Company's statement of cash flows (using the indirect method) for the year ended December 31, 2021. Take the following three steps outined 6 Step 1: From the comparative balance sheets, determine the increase in cash and cash equivalents during the year The increase in cash and cash equivalents during the year is Income Statement Income Statement Balance Sheet Balance Sheet Transction Data Steps Step 1 From the comparative balance sheets, determine the increase in cash and cash equivalents during the year. Step 2 Prepare a T-account to show the transaction activity in each long-term balance-sheet account. Step 3 Complete the statement of cash flows. From the income statement, take net income, depreciation, amortization, and the loss on sale of equipment to the statement of cash flows. Account for the year-to-year change in each balance sheet account