The financial statements of Sunland Ltd., a private company reporting under ASPE, follow: SUNLAND LTD. Balance Sheet December 31 Assets 2021 Cash $9,314 Short-term notes receivable 12,600 Accounts receivable 29,600 Inventory 31,100 Property, plant, and equipment 71.800 Accumulated depreciation (31,600) Total assets $122,814 Liabilities and Shareholders' Equity Accounts payable $26,600 Income tax payable 3,800 Notes payable 13,900 Common shares 24,300 Retained earnings 54,214 Total liabilities and shareholders' equity $122,814 2020 $12,100 21.900 15,600 26,600 78,600 (26,100) $128.700 $43,300 19,800 10,300 24,300 31.000 $128,700 $282,600 192,800 89,800 SUNLAND LTD. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $36,400 Loss on sale of equipment 2,400 Profit from operations Other revenues and expenses Interest revenue $(1,420) Interest expense Profit before income tax Income tax expense Profit 38,800 51,000 2,400 980 50.020 16.006 $34.014 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 $12,600 2. Equipment was sold during the year. This equipment cost $17,100 originally and had a carrying amount of $9.700 at the time of sale, 3 Equipment costing $10,300 was purchased in exchange for a $10,300 note payable. Depreciation expense is included in operating expenses Accounts receivable are from the sale of merchandise on credit Accounts payable relate to the purchase of merchandise on credit 4 5. 6, Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either - signes -15,000 or in parenthesis eg. (15,000 SUNLAND LTD. Cash Flow Statement-Indirect Method Adjustments to reconcile profitto 3 $ $ Note: Equipment costing $ was purchased by issuing a note payable