problem #6The comparative statements of financial position for Malcolm Heights Inc. are presented below:MALCOLM HEIGHTS INC.Comparative Statements of Financial PositionAssets20222021Cash.................................................................................$ 68,000$ 36,000Accounts receivable..........................................................97,00064,000Inventory...........................................................................180,000140,000Prepaid expenses.............................................................5,0004,000Investments......................................................................30,00020,000Property, plant, and equipment.........................................448,000400,000Accumulated depreciation.................................................(100,000)(80,000)Total............................................................................$728,000$584,000Liabilities and Shareholders' EquityAccounts payable..............................................................$ 76,000$ 68,000Accrued expenses payable...............................................20,00024,000Bonds payable..................................................................260,000200,000Common shares................................................................100,000150,000Retained earnings.............................................................272,000142,000Total............................................................................$728,000$584,000MALCOLM HEIGHTS CORPORATIONStatement of IncomeYear Ended December 31, 2022Sales.................................................................................$1,000,000ExpensesCost of goods sold.....................................................$580,000Operating expenses (excluding depreciation).............180,000Depreciation expense................................................30,000Interest expense.........................................................18,000Loss on sale of property, plant, and equipment..........8,000816,000Income before income tax.................................................184,000Income tax expense..........................................................34,000Net income........................................................................$ 150,000Additional information regarding fiscal 2022:1.New property, plant, and equipment costing $66,000 was purchased for cash.2.Old property, plant, and equipment costing $18,000 was scrapped when the carrying amount was $8,000.3.A cash dividend of $20,000 was declared and paid during the year.4.Accounts payable pertain to merchandise purchasesand accrued expenses pertain to operating expenses. InstructionsPrepare the statement of cashflows using the direct method.(25 marks)