Question 10 (10 marks) Condensed financial data of McKillop Corporation appear below: MCKILLOP CORPORATION Comparative Statements of Financial Position December 31 Assets 2024 2023 Cash............................................................................................... $ 74,700 $ 35,155 Accounts receivable ...................................................................... 104,000 67,000 Inventory....................................................................................... 100,000 112,000 Prepaid expenses........................................................................... 32,000 36,000 Long-term investments ................................................................. 81,000 66,000 Property, plant, and equipment ..................................................... 235,000 175,000 Accumulated depreciation ............................................................ (65,000) (60,000) Total ....................................................................................... $561,700 $431,155 Liabilities and Shareholders' Equity Accounts payable .......................................................................... $ 93,000 $ 75,000 Salaries payable ............................................................................ 29,000 24,000 Bonds payable............................................................................... 135,000 160,000 Common shares............................................................................. 240,000 91,000 Retained earnings.......................................................................... 64,700 81,155 Total ....................................................................................... $561,700 $431,155 MCKILLOP CORPORATION Statement of Income Year Ended December 31, 2024 Sales.............................................................................................. $500,000 Expenses Cost of goods sold.................................................................. $295,000 Operating expenses................................................................ 65,000 Depreciation expense ............................................................. 17,000 Interest expense...................................................................... 18,000 Loss on sale of equipment...................................................... 3,000 398,000 Income before income tax............................................................. 102,000 Income tax expense....................................................................... 15,300 Net income .................................................................................... $ 86,700 Additional information regarding fiscal 2024: 1. New equipment costing $85,000 was purchased for cash. 2. Old equipment costing $25,000 was sold when the accumulated depreciation was $12,000. 3. Cash dividends were declared and paid during the year. 4. Accounts payable pertain to merchandise purchases. Instructions Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2024.