The comparative unclassified statement of financial position for Cullumber Ltd. follows: CULLUMBERLTD. Statement of Financial Position December 31 Assets 2021 2020 Cash $55,000 $22,000 Accounts receivable 83,000 75,500 Inventory 170,000 176,500 Estimated inventory returns 7,000 5,000 Long-term investments 76,000 125,000 Equipment 250,000 188,000 Accumulated depreciation (75,000) (30,000) Total assets $566,000 $562,000 Liabilities and Shareholders' Equity Accounts payable $27,000 $41,000 Refund liability 5,000 4,000 Bank loan payable (noncurrent) 104,000 209,000 Common shares 215,000 170,000 Retained earnings 215,000 138,000 Total liabilities and shareholders' equity $566,000 $562,000 Additional information pertaining to 2021: 1. Net income was $109,000. 2. Sales were $984,000. 3. Cost of goods sold was $759,000. 4. Operating expenses were $43,000, exclusive of depreciation expense. 5. Depreciation expense was $45,000. 6. Interest expense was $12,000. 7. Income tax expense was $22,000. 8. Long-term investments were sold at a gain of $6,000. 9. No equipment was sold during the year. 10. $105,000 of the bank loan was repaid during the year. 11. Common shares were issued for $45,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -4 parenthesis e.g. (45,000).) CULLUMBER LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to Net cash provided by operating activities Gain on sale of long-term investments $ 109000 Depreciation expense Increase in accounts receivable Increase in estimated inventory returns V Decrease in accounts payable Increase in refund liability Decrease in inventory Net cash provided by operating activities Cash flows from investing activities V Proceeds from sale of long-term investments Purchase of equipment $ 45000 Net cash used by investing activities Cash flows from financing activities Payment of cash dividends Repayment of bank loan Issue of common shares Net cash used by financing activities Net increase in cash Cash, January 1 Cash, December 31 +A $ 45000 $