The statement of income and unclassified statement of financial position for Cullumber, Inc. follow: CULLUMBER, INC. Statement of Financial Position December 31 2021 $99,600 Assets 2020 Cash $47.400 125,000 113,500 70,500 42,300 119,800 91,750 2,200 2,000 19,000 27,800 322,500 298,000 (45,000) (52,700) $713,600 $570,050 Trading investments Accounts receivable Inventory Estimated inventory returns Prepaid expenses Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Property tax payable Refund liability Bank loan payable-current portion Bank loan payable-noncurrent portion Common shares Retained earnings $90,000 $74,700 10,300 6,200 1,300 900 110,000 131,250 39,000 43,000 220,000 190,000 243,000 124,000 Total liabilities and shareholders' equity $713,600 $570,050 CULLUMBER, INC. Statement of Income Year Ended December 31, 2021 Sales $543,150 188,700 354.450 116,470 237,980 Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investments Interest expense Income before income tax Income tax expense Net income $11,500 (4.750) 6,750 244,730 44,000 $200,730 Additional information regarding 2021: 1. 2. 3. 4. 5. Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $84,000 was purchased for $22.900 cash and a $61,100 long-term bank loan payable. Old equipment having an original cost of $59.500 was sold for $2,000. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46.400 of depreciation expense and a $3.400 loss on disposal of equipment. Common shares were issued for $44.000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. 6. 7. 8. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis eg. (15,000).) CULLUMBER, INC. Statement of Cash Flows $ TA Adjustments to reconcile net income to $ $ > $ by Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ paying $22.900 cash and issuing a $61,100 bank loan payable