Question 8 (10 points) Condensed financial data of McKillop Corporation appear below: MCKILLOP CORPORATION Comparative Statements of Financial Position December 31 Assets Cash Accounts receivable Inventory... Prepaid expenses. Long-term investments... Property, plant, and equipment. Accumulated depreciation. Total. 2022 2021 $74,700 $35,000 104,000 67.000 100,000 112,000 32,000 36,000 81,000 66,000 235,000 175,000 (65,000) _(60.000) $561.700 S431.000 Liabilities and Shareholders' Equity Accounts payable Accrued expenses payable. Bonds payable. Common shares. Retained earnings. Total. $ 93,000 $75,000 29,000 24,000 135,000 160,000 240,000 91,000 64.700 81,000 S561,700 $431.000 MCKILLOP CORPORATION Statement of Income Year Ended December 31, 2022 $500,000 Sales. Expenses Cost of goods sold Operating expenses. Depreciation expense. Interest expense... Loss on sale of equipment Income before income tax. Income tax expense. Net income. $295,000 65,000 17,000 18,000 3.000 398,000 102,000 15,300 $ 86,700 Additional information regarding fiscal 2022: 1. New equipment costing $85,000 was purchased for cash. 2. Old equipment costing $25,000 was sold for $10,000 cash when the carrying amount was $13,000. 3. Bonds were originally issued at face value. Bonds with a face value of $25,000 were converted into $25,000 of common shares during the year. 4. Cash dividends were declared and paid during the year. 5. Accounts payable pertain to merchandise purchases. Instructions Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2022