Stellar Inc. is a major retailer of road bicycles and a promoter of riding bicycles to work, both to save the environment and improve physical fitness. Financial statements for Stellar are presented below. STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2021 Cash 56,150 Accounts receivable 24.150 2020 20.150 10,150 Inventory 31,750 16,750 15,600 10.600 127,650 57.650 Prepaid expenses Total current assets Property and Equipment Property and equipment Less: Accumulated depreciation 160,300 150.300 78.900 70,000 Net property and equipment 81,400 80,300 Act TOTAL ASSETS $209,050 $137,950 38F Mostly cloudy Current Liabilities Accounts payable 12,100 16,000 10.600 8,600 Salaries payable Interest payable 2,150 3,150 Total current liabilities 24,850 27,750 Loan payable 100,300 60,300 Total Liabilities 125,150 88.050 Shareholders' Equity Common shares 9.150 350 Retained earnings 74.750 49.550 Total shareholders' equity 83.900 49.900 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $209.050 $137.950 INCOME STATEMENT For the Years Ended December 31 2021 2020 Sales revenue 609,900 500.000 Cost of sales 415.000 350,000 Gross margin 194.900 150,000 Expenses Salary expense 136.000 125.000 Interest expense 3,500 2,400 Other expenses 6,000 3.000 Depreciation expense 14.900 8,000 Total expenses 160,400 138,400 Operating income 34.500 11,600 Gain on disposal of equipment 1.100 Income tax expense 6,400 1.972 Net income $29.200 $9.628 The following is additional information concerning Stellar's transactions during the year ended December 31, 2021: . . Equipment costing $40,000 was purchased by paying $34,550 cash and issuing 100 shares. Equipment costing $30,000 that was purchased at the beginning of 2020 was sold at the end of 2021 for $25,100. Straight- line depreciation had been used with an expected asset life of 10 years and a residual value of $0. The other expenses relate to prepaid items. In order to supplement its cash, Stellar borrowed an additional $40,000. Cash dividends of $4.000 were paid at the end of the fiscal year. Cost of sales includes $185,000 of direct labour costs. . . Prepare a statement of cash flows for Stellar for the year ended December 31, 2021. using the direct method. Stellar follows ASPE Include any note disclosure on non cash financing and investing transactions. (Show amounts that decrease cash flow with either a-sign 08.-15,000 or in parenthesis es (15,000)) Stellar, Inc. Statement of Cash Flows $ > > 38"F Mostly cloudy