Question 2 The lan Austin Corporation had the following information available at the end of 20X2 lan Austin Corporation Income statement For the Year ended December 31, 20x2 Sales Cost of Goods Sold Gross Margin Operating Expenses Selling Expenses $158.400 Administrative Expenses $2.318,496 1495.830 $ 822,666 Amortization Expense Total Operating Expenses Tue Operating Expenses 313,400 141.000 12 800 $200,000 Other Revenues & Expenses Gain on Sale of Fixed Assets $ 64.000 Dividend Revenue 12.000 terest Expense 1.103 5001 0.200 Eamings before income taxes wme Tax Expense 203,166 10.000 L 125.100 Additional information: Tiffany Lane Usita Corporation purchased fixed assets costing $312,000 during 20X2 lan Austin Corporation Comparative Balance Sheet As at December 31, 20X2 & 20X1 Cash Accounts Receivable. Inventory Prepaid Rent Prepaid Insurance Office Supplies Fixed Assets Accu Amort Patent Total Assets Accounts Payable Taxes Payable Taxes Payable Bonds payable Premium on Bonds Asset statement of changes 20x2 20X1 Required: S 70,000 $ 68,000 1. Complete the 29,000 25,900 84,000 70,000 6,000 24,000 4,200 1,800 2,000 2,000,000 1,500 1,850,000 470,000) 90.000 (399,000) 100.000 $ 1.742.200 $ 1.821.200 of financial position using the indirect method 2. Reconcile the cash inflows and outflows from operations using the direct method. $ 74,000 10,000 7,000 $ 84,000 8,000 6,000 920,000 940,000 40.606 51,706 523,000 475.000 240.504 177484 1.742.200 Common Shares Retained Earnings 11.021.299