SUNLAND LTD. Balance Sheet December 31 Assets 2021 2020 Cash $90,690 $45,200 Accounts receivable 75,300 43,200 129,000 93,400 Inventory Prepaid expenses 39,700 26,500 130,000 116,000 268,100 244,200 (53,400) (48,600) $684,190 $515,100 Long-term investments Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Accrued expenses payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity $91,100 $76,200 12,100 8,000 112,000 158,900 227,900 241,090 167,100 104,900 $515,100 $684,190 SUNLAND LTD. Income Statement Year Ended December 31, 2021 Sales $491,900 Cost of goods sold 185,800 Gross profit 306,100 Operating expenses $57,000 Depreciation expense 44,100 Depreciation expense 44,100 Loss on sale of equipment 8.320 109,420 Profit from operations 196,680 5,460 Other expenses Interest expense Profit before income tax Income tax expense Profit 191,220 42,400 $148,820 1. 2. Additional information: New equipment costing $81.800 was purchased for $28.000 cash and a $53.800 note payable. Equipment with an original cost of $57,900 was sold at a loss of $8,320. Notes payable matured during the year and were repaid. A long-term investment was acquired for cash. 3. 4. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a-signeg. -15,000 or in parenthesis eg. (15,000).) SUNLAND LTD. Cash Flow Statement-Indirect Method Year Ended December 31, 2021 Operating Activities Profit $ 148820 Adjustments to Reconcile Profit to Cash, December 31 Cash, December 31 Depreciation Expense $ 44,100 Loss on Sale of Equipment 8.320 Increase in Accounts Receivable -32100 Increase in Inventory -13200 Increase in Accounts Payable > 14900 Increase in Accrued Expenses Payable 4100 -9480 Net Cash Used by Operating Activities 139340 Investing Activities Sale of Equipment