The records of Koop Co. provided the following information for the year ended 31 December 20X8: Statement of Comprehensive Income For year ended 31 December 20x8 Sales revenue $ 404,400 Cost of goods sold (294,400) Depreciation expense (22,600) Insurance expense (2,300) Interest expense (4,600) Salaries and wages expense (27,600) Remaining expenses (29,900) Loss on sale of equipment (4,600) Income tax expense (18,000) Net earnings and comprehensive 400 income Statement of Financial Position As of 31 December 20X8 20x7 Cash $ 140,300 $ 77,200 Accounts receivable 71,300 62.900 Inventory 35,800 21,900 Prepaid interest 3,000 5,300 Buildings and equipment 173,500 170,500 Accumulated depreciation (45,000) (44,200) Land 173,800 88,600 Total $552,700 $382,200 Accounts payable Wages payable Income tax payable $ 45,300 $ 39,600 4,600 8.900 12,800 enn An 889 Statement of Financial Position As of 31 December 20x8 Cash $ 140,300 Accounts receivable 71,300 Inventory 35,800 Prepaid interest 3,000 Buildings and equipment 173,500 Accumulated depreciation (45,000) Land 173,800 20x7 77,200 62.900 21.900 5,300 170,500 (44,200) 88,600 Total $552,700 $382,200 Accounts payable Wages payable Income tax payable Notes payable, long-term Common shares Retained earnings Total $ 45,300 $ 39,600 4,600 8.900 12.800 130,300 66,900 332,800 223,100 26,900 43,700 $552,700 $382.200 Additional information: a. Sold equipment for cash (cost, $32,900; accumulated depreciation, $21,400). b. Purchased land, $43,600 cash. c. Acquired land for $41,600 and issued common shares as payment in full. d. Acquired equipment, cost $36,300; issued a $36,300, three-year, interest-bearing note payable Required: Prepare the SCF, using the two-step indirect method Analyze every account to ensure all changes are included. Assume unexplained changes are from logical sources. (Deductible amounts and Cash outflows should be indicated with minus sign.) KOOP COMPANY Required: Prepare the SCF, using the two-step indirect method. Analyze every account to ensure all changes are included. Assume unexplained changes are from logical sources. (Deductible amounts and Cash outflows should be indicated with minus sign.) KOOP COMPANY Statement of Cash Flow For the year anded 31 December 200 Operating activities: Net earrings $ 400 Adjustments for non-cash items: Depreciation 22,600 Loss on sale of equipment Changes in current assets and current liabilities: Increase in accounts receivable Increase in inventory Decrease in prepaid interest Increase in accounts payable Decrease in wages payable Increase in income tax payable Net cash flows from operations Investing activities Sale of equipment Purchase of land $ 23,000 S 0 Net cash flows from investing Financing activities: Cash dividends paid Issued long-term note Issued common shares $ $ 400 22,600 Net earings Adjustments for non-cash items: Depreciation Loss on sale of equipment Changes in current assets and current liabilities: Increase in accounts receivable Increase in inventory Decrease in prepaid interest Increase in accounts payable Decrease in wages payable Increase in income tax payable Net cash flows from operations Investing activities: Sale of equipment Purchase of land 23,000 0 Net cash flows from investing Financing activities: Cash dividends paid Issued long-term note Issued common shares $ Net cash flows from financing Net increase in cash Cash balance beginning of the year Cash balance end of the year GA 0