S Supply Company is developing its annual financial statements at December 31. The statements are complete except for the tatement of cash flows. The completed comparative balance sheets and income statement are summarized: dditional Data: B. Bought equipment for cash, $42,000. Paid $11,000 on the long-term note payable. c. Issued new shares for $22,900 cash. 1. No dividends were declared or paid. Other expenses included depreciation, $6,250; wages, $21,500; taxes, $9,550; other, $8,250. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted shou indicated by a minus sign.) The following information was reported by three companies. When completing the requirements, assume that any and all purchases on account are for inventory. Required: 1. What amount did each company deduct on the income statement related to inventory? 2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account 3. By what amount do your answers in requirements 1 and 2 differ for each company? (Input all amounts as positive values.) 4. By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable increase (decrease)? 5. Using the indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis? (Amounts to be deducted should be indicated with minus sign.)