The financial statements for Nackawic Inc. are below. 56 Nackawic Inc. Balance Sheet December 31 Assets 9 Current Prior Year Year $92,700 $47.250 90,800 37,000 121,900 102,650 84,500 107,000 290,000 205,000 (49.500) (40,000) $630,400 $458.900 Cash Accounts Receivable Inventories Available-for-sale securities Property, Plant & Equipment Accumulated Amortization Total Assets 2 Liabilities & Shareholder's Equity Accounts Payable Accrued Expenses Payable Notes Payable Common Shares Retained Earnings Total Liabilities & Shareholder's Equity $52,700 $48,280 12,100 18,830 140,000 70,000 250,000 200,000 175,600 121.790 $630,400 $458.900 Nackawic Inc. Statement of Earnings Year Ended December 31, Current Year Revenues Sales Gain on sale of equipment $297,500 8.750 306,250 Expenses Gain on sale of equipment 8,750 306,250 Expenses Cost of Goods Sold Amortization Expense Operating Expenses Interest Expense Loss on sale of available-for-sale securities Earnings before income taxes Income tax expense Net earnings $99,460 58,700 14,670 2,940 7.500 183.270 122,980 32,670 $90.310 Additional information: 1. Available-for-sale securities were sold for $15,000, resulting in a lons of $7,500. New equipment costing $141,000 was purchased for cash during the year. Equipment coating $56,000 was sold for $15,550, resulting in a gain of $8,750. Accounts Payable relate only to merchandise suppliers. iv. Prepare a complete cash flow statement using the direct method