Question 1: The financial statements of Alexis Inc. appear below: ALEXIS INC. Comparative Balance Sheet December 31 2010 2009 Assets Cash Accounts receivable Prepaid insurance Inventory Equipment Accumulated depreciation Total Liabilities and Shareholder's Equity Accounts payable Income taxes payable Bank Loan Common shares Retained earnings Total $ 17,000 31,000 5,000 32,000 55,000 (20,000) $120,000 $ 20,000 34,000 3,000 15,000 78,000 (24,000) $126,000 $ 20,000 12,000 7,000 39,000 42,000 $120,000 $ 23,000 10,000 31,000 24,000 38,000 $126,000 ALEXIS INC. Income Statement Year Ended December 31, 2010 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $470,000 400,000 70,000 36,000 34,000 4,000 30,000 12,000 $ 18,000 The owing additional data were ovic 1. During the year the company sold some equipment for $2,000 cash. The company did not purchase any equipment during 2010. 2. Depreciation expense of $12,000 is included in the operating expenses category. 3. During the year the company issued common shares. 4. During the year the company repaid part of their bank loan. 5. During the year the company paid a cash dividend to the shareholders. REQUIRED: Prepare in proper format a Cash Flow Statement for Alexis Inc., using the indirect method