Question #1 Spring Company's income statement for the year ended March 31, 2021, and its comparative balance sheets as of March 31, 2021 and 2020 are as follows: $998,000 825,000 $173,000 $ Spring Company Income Statement For the Year Ended March 31, 2021 Sales Cost of goods sold Gross margin Operating expenses: Depreciation expense, building Depreciation expense, equipment Amortization expense, patents Total operating expenses Income from operations Other Incomel expenses) Gain on sale of equipment Interest expense Income before income taxes Income taxes expense Net income 30,000 6,000 7,000 43,000 130,000 $10,600 (26,600) (16,000) $114,000 64,000 $50,000 Spring Company Comparative Balance Sheets March 31, 2021 and 2020 Spring Company Comparative Balance Sheets March 31, 2021 and 2020 2021 2020 $183,120 204,860 225,780 $54,720 150,860 275,780 40,000 Assets: Cash Accounts receivable (net) Inventory Prepaid rent Land Building Accumulated depreciation, building Equipment Accumulated depreciation equipment Patents Total Asset Liabilities and Stockholders' Equity Accounts payable Notes payable (current) Income taxes payable Mortgage payable Common stock, $20 par value Additional paid-in capital Retained earnings Total liabilities and owners' equity 50,000 314,000 (30,000) 66,000 (29,000) 8,000 $992,760 68,000 (48,000) 12,000 $553,360 73,500 21,500 20,000 24,600 324,000 400,000 114,400 112,860 $992,760 300,000 74.400 80,860 $553,360 During 2021. Spring Company engaged in the below transactions: 1) Equipment that cost $27,000 with accumulated depreciation of $25,000 was sold at a gain of $10,600 2) Funds borrowed by issuing notes payable, $50,000; notes payable repaid, $30,000. 3) Equipment purchases, $25,000. 4) Paid cash dividends, $18,000. 5) Acquired a building by issuing $40,000 in common stock. 6) Purchase of a patent, $3,000 7) Land and building purchased for $324,000 by signing a mortgage for the total cost. 8) Sold 3,000 shares of $20 par value common stock for a total of $100,000. Required: Using the indirect method, prepare a statement of cash flows for Spring Company. Include a supporting schedule of noncash investing and financing transactions