Please complete Problem 14! Prepare the Statement of Cash Flow using the Indirect Method for the year 20X4.

Problem 14 Ms. Jo McKenzie, the owner, has asked for your help in preparing her statement of cash The operations of The McKenzie, a small lodging operation, are becoming more complex. flows. She is able to present you with condensed balance sheets and some additional information. The McKenzie Condensed Balance Sheets December 31, 20X3 and 20X4 20X3 20X4 Cash Accounts Receivable Investments Equipment _Accumulated Depreciation Total Assets $ 10,000 26,500 10,000 200,000 (20,000) $226,500 $321,500 $ 6,000 25,500 5,000 325,000 (40,000 c. Current Liabilities: Accounts Payable Mortgage Payable (Current) Dividends Payable Noncurrent Liabilities: Mortgage Payable Notes Payable $ 18,000 5,000 5,000 $ 21,000 5,000 5,000 75,000 -0- 70,000 40,000 Drint the information requested below. Cou Statement of Cash Flows 491 Common Stock DTC Retained Earnings 50,000 100,000 Total Liabilities and 73,500 80,500 Owners' Equity $226,500 $321,500 Additional information for 20X4: 1. Equipment that cost $20,000 depreciated to its salvage value of $2,000 and was sold for $8,000. 2. Common stock, purchased as a long-term investment for $5,000, was sold for $15,000. 3. Dividends declared totaled $15,000. 4. Equipment was purchased for $145,000. 5. Depreciation expense totaled $38,000. 6. Long-term debt of $5,000 was reclassified as current and $5,000 of long-term debt was paid. 7. Common stock of $50,000 was sold and long-term debt of $40,000 (note payable) was borrowed. 8. The McKenzie generated net income of $22,000. Required: Prepare the SCF as requested by Ms. McKenzie using the indirect method