The comparative statements of nancial position of Mikos Inc. as at December 31, 2014 and 2015, statement of earnings for the year ended December 31, 2015, are presented below: IvIIKDS INC. Comparative Statements of Financial Position December 31 2015 2014 Assets Cash $ 12,800 $ 20,800 Shortterm investments 100,800 80,400 Trade receivables 8?,000 41,200 Inventories, at cost 81 ,800 43, 800 Prepayments 7,800 13,800 Land 80,200 80,000 Property, plant, and equipment, net 205,200 108,000 Intangible assets 21800 35,800 $ 002,000 $511,400 Liabilities and Shareholders' Eouitv Trade pavables $ 20,800 $ 4?,800 Income tax pavable 13,800 4,800 Accrued liabilities 1 3,800 -0 Longtenn notes pavable 148,000 228,000 Contributed capital 2?8,000 Y0,000 Retained earnings 180,800 154,000 $ 882,000 $511,400 MIKDS INC. Statement of Earnings For the Year Ended December 31, 2015 Sales 513 084,000 Cost of sales 15 488,000 Amortization expense~intangible assets I800 Depreciation expenseproperty, plant, and equipment 38,800 Operating expenses 250,000 Interest expense 15,800 ?8?,400 Earnings before income taxes 1?8,800 Income tax expense 52,080 Net earnings $ 123,820 Net cash ow from operating activities Cash flows from investing activities: Net cash ow used for investing activities Cash ows from nancing activities: Net cash flow from nancing activities Cash and shorttent] investments, beginning of year ISash and shorttenn investments, end of year Additional information is as follows: a. Land was sold for cash at its carrying amount. b. The shortterm investments will mature in February.r 2016. c. Cash dividends were declared and paid in 2015. d. New equipment with a cost of $169,800 was purchased for cash, and old equipment was sold at its carrying amount. e. Long-term notes of $29,000 were paid in cash, and notes of $49,000 were converted to shares. Required: 1. Prepare a statement of cash ows for Mikes Inc. for the 1year ended December 31, 2015 by using the indirect method. [Negative amounts should be indicated with a minus sign} Net cash flow from operating activities Cash flows from investing activities: Net cash ow used for investing activities Cash flows from nancing activities: 2. Determine the effects of this stock dividend on assets, liabilities, and shareholders\" equity. [Indicate the direction of the effect by selecting increase, decrease, or \"No change" for no effect from the dropdown menu.) Assets Liabilities Shareholders' equity: Total shareholders' equity Retained earnings Share capital At the beginning of 2015, the shareholders' equity section of the statement of nancial position of Ponti Corporation reected the following: Common shares, no par value, authorized unlimited number of shares, issued and outstanding 36,700 shares $361000 Retained earnings 764,000 On February 1, 2015, the board of directors declared a 100 percent stock dividend to be issued on April 30, 2015. The price per common share was $18 on February 1, 2015. Required: 1. For comparative purposes, prepare the shareholders' equity section of the statement of nancial position (a) before the stock dividend and (b) alter the stock dividend. Share capital: Outstanding 36,700 shares Outstanding 73,400 shares Total shareholders' equity