Question 1 (22 marks) MacFarlane Inc. Balance Sheets as of December 31 2016 Cash Accounts receivable $465,000 225,000 407,500 427,500 211,000 25,000 Prepaid insurance Plant and equipment 36,000 1,215,000 1,200,000 240,000300,000) 601,500 3,300,000 2,340,000 Land 1,216,500 $159,000 150,000 30,000 Accounts Payable Wages Payable Interest Payable Notes Payable -long-term Common Shares Retained Earnings 17,000 9,000 690,000 3,000 2,040,000 1,500,000 60,000 3,300,000 2,340,000 375,000 MacFarlane Inc. Income Statement for the Year Ended December 31, 2017 Expenses and losses: Cost af goods sold Administrative expenses Wage expense Depreciation expense Interest expense Insurance expense Losses on sale of equipment Income tax expense Total expenses and losses Net Income $540,000 195,000 180,000 75,000 0,000 5,000 0,000 5,000 1,110,000 Other Information: .Sold equipment for $60,000 cash (cost $225,000, accumulated depreciation- $135,000). .Acquired land for $315,000 and issued common shares as payment in full. .Acquired equipment for $240,000. Issued a $150,000, three-year, interest bearing note payable and paid the rest in cash. Paid a $150,000 long-term note by issuing commons shares to the creditor . Required: Prepare a cash flow statement in good form with indirect method for Macfarlane Inc. for the year ended December 31, 2017. Provide all disclasures and supplementary information that is required. Make reasonable assumptions for any information that is missing. Show your work and provide all supporting calculations