The McKenzie Condensed Balance Sheets. December 31, 20X3 and 20X4 20X3 20X4 10,000 Cash 26,500 6,000 25,500 Investments Accounts Receivable: Equipment Accumulated Depreciation 10,000 5,000 200,000 325,000 (20,000) (40,000) $ 226,500 321,500 Total Assets Current Liabilities: $ 18,000 21,000 Accounts Payable Mortgage Payable (Current) 5,000 5,000 5,000 5,000 Dividends Payable Noncurrent Liabilities: Mortgage Payable Notes Payable Common Stock Retained Earnings 75,000 70,000 -0- 40,000 50,000 100,000 73,500 80,500 Total Liabilities and 226,500 321,500 Owners' Equity Additional information for 20X4: 1. Equipment that cost $20,000 depreciated to its salvage value of $2,000 and was sold for $8,000. 2. Common stock, purchased as a long-term investment for $5,000, was sold for $15,000. 3. Dividends declared totaled $15,000. 4. Equipment was purchased for $145,000. 5. Depreciation expense totaled $38,000. 6. Long-term debt of $5,000 was reclassified as current and $5,000 of long-term debt was paid. 7. Common stock of $50,000 was sold and long-term debt of $40,000 (note payable) was borrowed. 8. The McKenzie generated net income of $22,000. Required: Prepare the SCF as requested by Ms. McKenzie using the indirect method