The balance sheet and income statement for The Bike Shop Ltd. is shown below. 1 2 The Bike Shop Ltd. 3 Statement of Financial Position 4 As at December 31st 15 16 27 Cash S 18 Held for Trading Investments 19 Accounts Receivable 20 Inventory 21 Prepaid Expenses 22 Equipment 23 Accumulated Depreciation 24 Total Assets 2021 100,470 S 135,000 75,800 131,500 18,400 270,000 (52,670) 678,500S 2020 48,400 117,000 43,000 92,850 29,000 242,500 (52,000) 520,750 25 S 26 Accounts Payable 27. Accrued Liabilities 28 Bank Loan Payable 29 Common Shares 30 Retained Earnings 31 Total Liabilities and Shareholders' Equity 93,000 S 18,500 110,000 209,000 248,000 678,500 $ 77,300 10,000 150,000 178,000 105,450 S 520,750 32 33 The Bike Shop Ltd. 34 Income Statement 35 For the year ended December 31, 2021 36 37 Sales Cactoforte Salat Instruction Rabo Formu Sheet S 492,780 385.450 Q Part OPAL QUO 01 Part Question Two Questo B C c D G 33 The Bike Shop Ltd. 34 Income Statement 35 For the year ended December 31, 2021 36 37 Sales 38 Cost of Goods Sold 39 Gross Profit 40 Operating Expenses 41 Operating Income 42 Unrealized Gain From Held For Trading Investment 43 Interest expense 44 Income Before Taxes 45 Income Tax Expense 46 Net Income S 492,780 (185,460) 307,320 (116,410) 190,910 18,000 (4,730) 204,180 (45,000) 159,180 47 48 Additional Information: 50 1. Prepaid expenses and accrued liabilities relate to operating expenses 51 2. An unrealized gain on held for trading investments of S14,000 was recorded 52 3. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 long-term bank loan payable, 53 4. Old equipment having an original cost of $59,025 was sold for $2,750 cash 54 5. Accounts payable relate to the cost of Goods Sold. 55 6. Some of the bank loan was repaid during the year. 56 7. A dividend was paid in cash during the year 52 8. Operating expenses include: $46,500 in depreciation expense and a $8,920 loss on disposal of the old equipment, > SB 59 REQUIRED: 60 61 Prepare the cash flow statement as at December 31, 2021. You can choose whether to use the direct method or indirect method