Required: Prepare the SCF as requested by Ms. McKenzie using the indirect method. Thank you.

The The Aa of Ru Problem 14 The operations of The McKenzie, a small lodging operation, are becoming more complex. Ms. Jo McKenzie, the owner, has asked for your help in preparing her statement of cash flows. She is able to present you with condensed balance sheets and some additional information. The McKenzie Condensed Balance Sheets December 31, 20x3 and 20X4 20X3 20X4 Cash $ 10,000 $ 6,000 Accounts Receivable 26,500 25,500 Investments 10,000 5,000 Equipment 200,000 325,000 Accumulated Depreciation (20,000) (40,000) Total Assets $226,500 $321,500 Current Liabilities: Accounts Payable $ 18,000 $ 21,000 Mortgage Payable (Current) 5,000 Dividends Payable 5,000 5,000 Noncurrent Liabilities: Mortgage Payable 75,000 70,000 Notes Payable 40,000 5,000 Statement of Cash Flotus 491 Common Stock Retained Earnings 50,000 100,000 Total Liabilities and 73,500 80,500 Owners' Equity $226,500 $321,500 Additional information for 20X4 1. Equipment that cost $20,000 depreciated to its salvage value of $2,000 and was sold for $8,000 2. Common stock, purchased as a long-term investment for $5,000, was sold for $15,000 3. Dividends declared totaled $15,000. 4. Equipment was purchased for $145,000 5. Depreciation expense totaled $38,000 6. Long-term debt of $5,000 was reclassified as current and $5,000 of long-term debt was paid. 7. Common stock of $50,000 was sold and long-term debt of $40,000 (note payable) was borrowed. 8. The McKenzie generated net income of $22,000, Required: Prepare the SCF as requested by Ms. McKenzie using the indirect method