PART A Two-year balances of selected accounts of Far East Company appear below: Cash Accounts receivable (net) Inventory Property, Plant and Equipment (at cost) Accounts Payable Income Taxes Payable Dividend Payable Ordinary shares (par value $25 per share) Note Payable Balance Dec.31, 2020 $31,000 14,000 40,000 84,000 0 1,000 3,000 250 0 Balance Dec.31,2021 $58,770 12,000 43,000 77,000 3,200 300 3,500 500 5,000 Additional information for 2021: a. Net profit after tax, $16,000. b. Depreciation expense for the year, $5,000. c. Cash dividend declared $4,500. The company has regarded dividend payment as financing activities. d. December 30, 2021, purchased a machine for $10,000; paid half cash and issued a one year, 10%, interest-bearing note of $5,000 for the balance. e. Issued 20 shares of unissued shares at $26 per share for cash. f. Repurchased 10 ordinary shares at $25 per share by cash. g. Sold an equipment (cost $12,000, accumulated depreciation $2,000) for $6,000 cash and incurred a loss of $4,000. h. Compensation gain of $2,000 due to the destruction of an equipment (cost $5,000, accumulated depreciation $1,000); received $6,000 cash settlement from the insurance company. The gain has been included in the income statement. Required: Compile the Statement of Cash Flows for Far East Company using indirect method (You should illustrate the answers using the format specified in Chapter 4, Spiceland) (8 marks) Part B: In your own words, write two statements (complete sentences) that describe the usefulness of the Statement of Cash Flows. (2 marks)