Question 1 (12 Marks) Presented below are the financial statements of Dorian Inc. DORIAN INC Statement of Financial Position at December 31 2020 2019 Assets Cash $ 117,940 $ 87,200 Accounts receivable 42,320 36,900 Inventory 46,600 53,600 Equipment 746,800 666,800 Accumulated depreciation (74,400) (64,000) Total assets $ 879,260 $ 780,500 Liabilities and shareholders' equity Accounts payable $ 33,200 $ 39,400 Income taxes payable 45,400 40,220 Notes payable (due Dec 31, 2025) 480,000 440,000 558,600 519,620 Common shares 160,000 130,000 Retained earnings 160.600 130,880 320,600 260.880 Total liabilities and shareholders' equity $ 879,200 $ 780,500 DORIAN INC Retained earnings 160,600 130,880 320,600 260,880 Total liabilities and shareholders' equity $ 879,200 $ 780,500 DORIAN INC Income Statement year ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Profit from operations Other expenses and losses Interest expense 44,200 Loss on sale of equipment 23,200 Profit before income taxes Income tax expense Net Income 1,134,000 497,200 636,800 410,000 226,800 67.400 159,400 54,790 $ 104,610 Additional Information: (a) Included in operating expenses is $54,000 for depreciation expense. (b) The company purchased $180,000 of new equipment during the year. (c) Equipment costing $100,000 with a carrying value of $56,400 was sold for $33,200 cash. (d) Cash dividends were declared and paid during the year. (e) An additional note payable was obtained during the year. (f) Additional common shares were issued during the year. Required: Prepare in proper format, a Statement of Cash Flows for Dorian Inc. for the year ended December 31, 2018, using the indirect method. SHOW ALL WORKINGS AND CALCULATIONS