Presented below is the comparative balance sheet for Oriole Inc. a private company reporting under ASPE, at December 31, 2021, and 2020 2020 $90,000 75,000 155,500 ORIOLE INC. Balance Sheet December 31 Assets 2021 Cash $65,600 Accounts receivable 101.000 Inventory 205,000 Long term investment 101,500 Property, plant, and equipment 535,000 Less: Accumulated depreciation (162,500) 5845,600 Liabilities and Shareholders' Equity Accounts payable $57.500 Dividends payable 6,000 Income tax payable 14,000 Long-term notes payable 25,000 Common shares 630.000 Retained earnines 113.100 5845,600 460,000 (140,000) $648.500 $47.000 0 15.000 D 525.000 41500 5648.500 $661,600 432,000 229,600 ORIOLE INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $147,500 Loss on sale of equipment 3,000 Profit from operations Interest expense 3,000 Interest revenue (4,500) Profit before income tax Income tax expense Profit 150,500 79,100 (1,500) 80,600 14,000 $66,600 Additional information: 1 Cash dividends of $15.000 were declared. 2. A long-term investment was acquired for cash at a cost of $101.500 3. Depreciation expense is included in the operating expenses. 4 the company issued 10,500 common shares tor cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9,000 at the time of sale. The company issued a nate payable for $28,000 and repaid $3.000 by year end. 7. All purchases of inventory are on credit. 8. Accounts Payable is used only to record purchases of inventory 5 6. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a-sines. - 15.000 or in parenthesis c.g. (15,000).) ORIOLE INC Cash Flow Statement - Direct Method $ $ > $