Tuit Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2023: Tuit Inc. Comparative Statement of Financial Position December 31 2023 2022 $ Cash 53,625 25,000 Accounts Receivable 58,000 51,000 Inventory 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation-equipment -35,000 -25,000 Goodwill 20,000 50,000 Total assets 295,625 295,000 Accounts payable 46,000 40,000 Income tax payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,000 Long-term loans payable 60,000 69,000 Common shares 130,000 130,000 Retained earnings Total liabilities and shareholders' equity 39,625 36,000 295,625 295,000 Sales revenue Cost of good sold Gross margin Operating expenses Operating income Interest expense Impairment k Gain on sale Income before income tax Income tax expense Net income Additional information: Tuit Inc. Income Statement Year Ending December 31, 2023 338,150 165,000 173,150 120,000 53,150 11,400 30,000 -2,000 1. Dividends on common shares in the amount of $6,000 were declared and paid during 2023. 2. Total depreciation was $24,000 3. Equipment sold for proceeds of $8,000 4. Equipment purchased for $44,000 39,400 13,750 4,125 9,625 Instructions: Prepare a statement of cash flows using the indirect method. Tuit Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2023 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash by operating activities: Net cash Depreciation S Impairment loss, goodwill $ Gain on sale of equipment S Increase in accounts receivable $ in inventory S in prepaid rent 5 in accounts payable S in S&W payable S in income tax payable $ operating activites Cash flows from investing activities Proceeds on sale of equipment Purchase of equipment $ $ Net cash investing activities Cash flows from financing actitivies Principal payments on ST loans Principal payments on LT loans S S Dividend paid S Net cash financing activities S Net increase in cash Cash January 1, 2023 Cash, December 31, 2023 Supplemental disclosures for cash flow information: Cash paid during the year for: Interest Income taxes $ Show your working Cost of equipment Equipment Dec 31, 2023 Equipment Jan 1, 2023 Net increase Cost equipment sold Cost of equipent purchased Accumulated depreciation of equipment S $ S S 5 Ace. Depreciation Dec 31, 2023 $ Ac. Depreciation Jan 1, 2023 S Net increase 5. Depreciation expense for the year 5 Acc. Depreciation for equipment sold S Sale of equipment Cost Accumulated depreciation of equipment Carrying amount of equipment sold Proceeds on sale of equipment Gain on sale of equipment S $ $ S $ $