The financial statements of Oriole Ltd., a private company reporting under ASPE, follow: ORIOLE LTD. Balance Sheet December 31 Assets 2021 2020 Cash $9,514 $11,500 Short-term notes receivable 12,450 21,750 Accounts receivable 29,000 15,000 Inventory 30,500 26,000 Property, plant, and equipment 71,500 78,000 Accumulated depreciation (31,000) (25,500) Total assets $121,964 $126,750 Liabilities and Shareholders' Equity Accounts payable $26,000 $43,000 Income tax payable 3,500 19,500 Notes payable 14,000 10,000 Common shares 24,000 24,000 Retained earnings 54,464 30,250 Total liabilities and shareholders' equity $121,964 $126,750 $282,000 192,500 89,500 ORIOLE LTD. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $36,250 Loss on sale of equipment 2,250 Profit from operations Other revenues and expenses Interest revenue $(1,300) Interest expense 2,250 Profit before income tax Income tax expense Profit 38,500 51,000 950 50,050 15,336 $34,714 2. Additional information: 1. Short-term notes receivable are loans to other companies. During the year, the company collected the outstanding balance at December 31, 2020, and made new loans in the amount of $12,450. Equipment was sold during the year. This equipment cost $16,500 originally and had a carrying amount of $9,250 at the time of sale. 3. Equipment costing $10,000 was purchased in exchange for a $10,000 note payable. 4. Depreciation expense is included in operating expenses. 5. Accounts receivable are from the sale of merchandise on credit. 6. Accounts payable relate to the purchase of merchandise on credit. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a - signe.g. -15,000 or in parenthesis eg. (15,000).) ORIOLE LTD. Cash Flow Statement-Indirect Method Year Ended December 31, 2021 Adjustments to reconcile profit to $ > ORIOLE LTD. Cash Flow Statement-Indirect Method Year Ended December 31, 2021 Payments for Operating Expenses Payment of Cash Dividends Payments for Taxes Collections from Customers Acquisition of Long-term Debt Investment Collection of Notes Receivable Decrease in Accounts Payable Decrease in Income Tax Payable Amortization of Premium on Long-term Debt Investment Sale of Equipment Profit Payments to Suppliers Issue of Notes Receivable Increase in Accounts Payable Loss on Sale of Equipment Repayment of Note Payable Depreciation Expense Increase in Inventory Increase in Accounts Receivable Increase in Accounts Payable Amortization of Premium on Long-term Debt Investment Increase in Accounts Receivable Acquisition of Long-term Debt Investment Repayment of Note Payable Issue of Notes Receivable Payments for Taxes Sale of Equipment Increase in Inventory Payment of Cash Dividends Payments to Suppliers Collection of Notes Receivable Loss on Sale of Equipment Decrease in Accounts Payable Depreciation Expense Payments for Operating Expenses Profit Decrease in Income Tax Payable Collections from Customers $ $ > $ Operating Activities Cash, December 31 Net Cash Used by Investing Activities Cash, January 1 Investing Activities Net Decrease in Cash Net Cash Used by Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Operating Activities Net Increase in Cash Financing Activities Net Cash Used by Financing Activities Net Cash Provided by Investing Activities $ Note: Equipment costing $ was purchased by issuing a note payable