Section B Answer all four questions. The marks are indicated next to the questions. Question 1 [30 marks] The comparative balance sheet of Merrick Co. for December 31, 2022 and 2021, is as follows: Assets Cash Accounts Receivable Inventories Investments Land Equipment Accumulated Depreciation-equipment Liabilities and Stockholder's Equity Accounts Payable (merchandise creditors) Accrued Expenses payable (operating expenses) Dividends payable Common stock, $1 par Paid-in Capital in excess of par-common stock Retained earnings Dec. 31, 2022 $41,600 121,900 175,600 0 174,000 258,000 (58,300) $712,800 NICOSIA $121,000 18,000 15,000 67,200 264,000 227,600 $712,800 Dec. 31, 2021 a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year. c. The investments were sold for $54,000 cash. d. The common stock was issued for cash. e. There was a $79,200 credit to Retained Earnings for net income f. There was a $60,000 debit to Retained Earnings for cash dividends declared Required: $28,200 110,700 170,500 60,000 0 210,600 (49,600) $530,400 The following additional information was taken from the records of Merrick Co.: $114,200 15,800 12,000 60,000 120,000 208,400 $530,400 Prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities for the year ended 31st Dec. 2022