The statement of income and unclassified statement of financial position for Sunland Inc. follow: Sunland Inc. Statement of Financial Position March 31 Assets 2024 2023 Cash $46,500 $99,670 Trading investments 209,800 224,800 Accounts receivable 112,200 40,200 Inventory 275,780 199,900 Estimated inventory returns 11,200 3,400 Prepaid expenses 24,665 35,375 Equipment 306,600 286,370 Accumulated depreciation (88,745) (66,395) Total assets Liabilities and Shareholders' Equity $898,000 $823,320 Accounts payable $94,130 $89,560 Refund liability 5,020 2,410 Deferred revenue 11,600 5,870 Bank loan payable-current portion 129,600 98,400 Bank loan payable-non-current portion 90,800 155,720 Common shares 294,400 274,200 Retained earnings 272,450 197,160 Total liabilities and shareholders' equity $898,000 $823,320 Sales Cost of goods sold Gross profit Operating expenses Sunland Inc. Statement of Income Year Ended March 31, 2024 $590,330 170,910 419,420 134,800 284,620 Income from operations Other income and expenses Unrealized loss on trading investments $15,000 Interest expense 6,810 21,810 Income before income tax 262,810 Income tax expense 54,790 Net income $208,020 Additional information regarding 2024: 1. Operating expenses include $74,400 of depreciation expense and a $15,400 loss on disposal of equipment. 2. No trading investments were bought or sold during the year, but management intends to trade some soon. 3. Prepaid expenses relate to operating expenses. 4. New equipment costing $97,330 was purchased by paying $18,530 cash and issuing common shares worth $78,800. These were the only common shares issued during the year. 5. Old equipment having an original cost of $77,100 was sold for $9,650. 6. Accounts payable relate to inventory suppliers. 7. 8. A new $93,000 bank loan was received during the year and bank loan payments were also made during the year. No common shares were issued for cash during the year, but some were bought back and cancelled at the same price that they were originally issued at. 9. The company paid dividends during the year. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesis eg. (15,000).) Adjustments to reconcile net income to SUNLAND INC. Statement of Cash Flows $