Question 1 Sully Co. had the following financial data related to the year ended: Dec 31, 2021 S Dec 31, 2020 S $ Cash 72,740 163,880 Accounts receivable 135,250 64,220 Merchandise inventory 145,000 123,900 Long-term investments 112,000 112,800 Equipment 390,000 184,500 Less: Accumulated depreciation, 120,000 110,000 734.990 539,300 Accounts payable 166,550 91,000 Income taxes payable 24,000 23,450 Bonds payable 98,500 125.560 Common shares 295,000 222,000 Retained earnings 150,940 77.290 734,990 539.300 Sales (all on credit) Less: Cost of goods sold Gross Profit Add: Profit on disposal of equipment Less: Operating expenses Depreciation expenses Other operating expenses Interest expenses Net Profit for the year 413,532 165.000 248,532 2,000 250,532 170,000 56,431 10,185 236.616 13.916 Additional information for your reference: a) There was no gain or loss on the long-term investments sold or the bonds retired. b) Old equipment with an original cost of $125,000 and accumulated depreciation of $60,000 was sold for $67,000. c) New equipment was purchased for $330,500. d) Dividends of $40,266 were paid during the year. Additional shares were issued during the year. 1 REQUIRED Prepare a statement of cash flows for the year ended December 31, 2021, using the INDIRECT METHOD.