Question 5 (10 marks)

Shown below are the balances of selected accounts of Fun Limited.

	1 Jan 2021	31 Dec 2021
Accounts receivable	$241,500	$273,000
Inventory	$252,000	$262,000
Prepaid rent	$63,000	$67,200
Accounts payable	$221,550	$237,300
Salaries payable	$72,450	$66,150
Net sales		$3,097,500
Cost of goods sold		$1,627,500
Operation expenses (including depreciation of $94,500)		$367,500
Gain from sale of equipment		$10,000

Prepare the partial statement of cash flow for the year ended 31 December 2021, showing the computation of net cash from operating activities by indirect method.