Question 1 (14 marks - 28 minutes) Point Blank Inc (PBI) is in the process of completing their end of year financial statements. One financial statement they require your assistance is to complete a cash flow statement for the year ending 2021. PBI fiscal year is December 31. PBI's management has provided the following information for you to develop a cash flow statement using the indirect method Point Blank Inc. Comparative Balance Sheets For years 2020 and 2021 Assets Dec 31 2021 Dec 31, 2020 Cash $ 78,000 $ 54,000 Accounts receivable 132,000 99.000 Prepaid insurance 28,000 24,000 Land 32,000 78 000 Equipment 140,000 120,000 Accumulated depreciation--equipment (36,000) _(19.000) Total assets $374000 $356.000 Liabilities and Shareholders' Equity Accounts payable $ 16.000 $ 8,000 Bonds payable 49,000 28,000 Common shares 280 000 215,000 Retained earnings 29.000 105.000 Total liabilities and shareholders' equity $374.000 $356.000 Additional information regarding fiscal 2021 1. PBl reported a loss of $61,500 for the year 2. They declared and paid cash dividends for the year 3. Land was sold for cash at a loss of $12,000. This is the only land transaction during the year. 4. Equipment costing $26,000 and accumulated depreciation of $14,000 was sold for $12,000 cash 5. The bonds were originally issued at face value. $19,000 worth of bonds were retired during the year at their carrying amount 6. Equipment was exchanged for common shares. The fair value of the shares at the time of the exchange was $50,000 Required - Prepare the following sections of the statement of cash flow for the year ended December 31, 2021 using the indirect method: Cash flow from operations (9 marks) Cash flow from investing (4 marks) Comment on what your answers in parts (a) and (b) tell you about Point Blank Inc. (1 mark) a. c