Presented below is the comparative balance sheet for Oriole Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: ORIOLE INC. Balance Sheet December 31 Assets 2021 2020 Cash $62,200 $98,000 Accounts receivable 101,000 75,000 Inventory 205,000 155,500 Long-term investment 101,500 0 Property, plant, and equipment 535,000 460,000 Less: Accumulated depreciation (162,500) (140,000) $842,200 $648,500 Liabilities and Shareholders' Equity Accounts payable $57.500 $47,000 Dividends payable 6,000 0 Less: Accumulated depreciation Liabilities and Shareholders' Equity (162,500) (140,000 ) $842,200 $648,500 Accounts payable $57,500 $47,000 Dividends payable 6,000 0 Income tax payable 14,000 15,000 Long-term notes payable 25,000 0 Common shares 630,000 $25,000 Retained earnings 109,700 61,500 $842,200 $648,500 ORIOLE INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit $658,200 432,000 226.200 ORIOLE INC. Income Statement Year Ended December 31, 2021 Sales $658,200 Cost of goods sold 432,000 Gross profit 226,200 Operating expenses $147,500 Loss on sale of equipment 3,000 150,500 Profit from operations 75,700 Interest expense 3,000 Interest revenue (4,500) (1,500) Profit before income tax 77,200 Income tax expense 14,000 Profit $63,200 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. 4. 5. Depreciation expense is included in the operating expenses. The company issued 10,500 common shares for 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 note payable for $28,000 and repaid $3,000 by year end. 6. 7. All purchases of inventory are on credit. 8. Accounts Payable is used only to record purchases of inventory. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis eg. (15,000)) ORIOLE INC. Cash Flow Statement - Indirect Method Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Adjustments to reconcile profit to ORIOLE INC. Cash Flow Statement-Indirect Method