The comparative unclassified statement of financial position for Cullumber Ltd. follows: CULLUMBERLTD. Statement of Financial Position December 31 Assets 2021 Cash $53,000 Accounts receivable 81,000 Inventory 178,000 Estimated inventory returns 8,000 Long-term investments 76,000 Equipment 265,000 Accumulated depreciation (77,000) Total assets $584,000 2020 $22,000 75,500 184,000 5,000 145,000 184,000 (31,000) $584,500 Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders equity $23,000 9.000 118.000 217,000 217,000 $584,000 $ 48,500 4,000 230,000 172.000 130,000 $584,500 Additional information pertaining to 2021: 1. 2. 3. 4. 5. 6. 7. Net income was $114,000. Sales were $986,000. Cost of goods sold was $756,000. Operating expenses were $41,000, exclusive of depreciation expense. Depreciation expense was $46,000. Interest expense was $13,000. Income tax expense was $21,000. Long-term investments were sold at a gain of $5,000. No equipment was sold during the year. $112,000 of the bank loan was repaid during the year. Common shares were issued for $45,000. 8. 9. 10. 11. CULLUMBER LTD. Statement of Cash Flows-Indirect Method $ Adjustments to reconcile net income to > > >