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 $431.000 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 $561.700 $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 2 Additional information regarding fiscal 2022: 1. New equipment costing $85,000 was purchased for cash 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