mparative balance sheet accounts of Harding Company are presented below. Harding Company Comparative Balance Sheet Accounts As of December 31 Assets 2021 Cash $ 52,500 $ Accounts receivable 116,250 Allowance for doubtful accounts (7,500) Inventory 56,250 Long-term investments 41,250 Land 30,000 Buildings 108,750 Accumulated depreciation--building (27,750) Equipment 52,500 Accumulated depreciation--equipment (15,750) Total $ 406,500 $ Liabilities and Equity Accounts payable 49,500 $ Income tax payable 9,000 Long term notes payable 46,500 Common stock 232,500 Retained earnings 69,000 Total 406,500 $ 2020 38,250 97,500 (6,000) 45,750 63,750 18,750 108,750 (21,000) 36,000 (10,500) 371,250 $ 45,000 7,500 52,500 195,000 71,250 371,250 Additional data: 1. Equipment that cost $7,500 and was 60% depreciated was sold in 2021. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $26,250 were sold during the year. S. There were no write-offs of uncollectible accounts during the year. Harding's 2021 income statement is as follows. 1 712,500 (450,000) 262,500 (187,500) 75,000 5 Sales revenue 6 Less: cost of goods sold 7 Gross profit -8 Operating expenses (includes depreciation expense 99 and bad debt expense) 20 Income from operations 81 Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes 45 Income tax expense Net income 47 48 Required: 49 Prepare a statement of cash flows for 2021 using the indirect method, 42 43 11,250 (2,250) 44 9,000 84,000 (33,750) 50,250 46