Question 1: Cash flow statement (13 marks)

The partial comparative balance sheets of Impel Corporation at December 31, 2021, reported the following:

December 31

2021

2020

Current assets:

Cash

$27,000

$21,000

Accounts receivable

43,000

49,000

Inventories

113,000

97,000

Current liabilities:

Accounts payable

$0

$0

Impel's transactions and results for the year ended December 31, 2021 also included the following:

Net income$40,000

Depreciation expense9,000

Acquisition of equipment for cash15,000

Payment of cash dividend18,000

Required:

Prepare Impel Corporation's statement of cash flows for the year ended December 31, 2021, using the indirect method to report cash flows from operating activities.