UALITY KITCHEN COMPANY Balance Sheet For the year ended December 31, 2021 2021 2020 Assets Cash $14,000 $10,000 Accounts receivable 29,000 24,000 Inventory 13,500 17,000 Prepaid expenses 2,000 2,000 Land 2,50,000 2,50,000 Building and equipment - cost 4,97,000 4,22,000 Accumulated depreciation -150000 -1,25,000 Total assets $6,55,500 $6,00,000 3 Liabilities and Shareholders' Equity Accounts payable $25,900 $22,400 S Taxes payable 1,000 3,000 5 Interest payable 7 Salaries payable 8 Long-term debt 9 Common shares 1,500 2,500 8,000 5,000 2,34,000 2,60,000 1,20,000 1,00,000 10 Retained earnings 2,65,100 2,07,100 1 Total liabilities and shareholders' equity $6,55,500 $6,00,000 Quality Kitchen Company's 2021 single-step income statement and comparative balance sheet are provided below: QUALITY KITCHEN COMPANY Income Statement For the year ended December 31, 2021 Revenue Expenses Cost of goods sold Salaries Other operating expense Depreciation expense Interest Income taxes Profit $9,20,000 $4,93,500 1,89,000 73,500 25,000 13,000 18,000 8,12,000 $1,08,000 ssets ash QUALITY KITCHEN COMPANY Balance Sheet For the year ended December 31, 2021 2021 2020 $14.000 sin nnn. Cash Accounts receivable Inventory Prepaid expenses Land Building and equipment-cost Accumulated depreciation Total assets $14,000 $10,000 29,000 24,000 13,500 17,000 2,000 2,000 2,50,000 2,50,000 4,97,000 4,22,000 -150000 -1,25,000 $6,55,500 $6,00,000 Liabilities and Shareholders' Equity Accounts payable $25,900 $22,400 Taxes payable 1,000 3,000 Interest payable Salaries payable 1,500 2,500 8,000 5,000 Long-term debt 2,34,000 2,60,000 Common shares 1,20,000 1,00,000 Retained earnings 2,65,100 2,07,100 Total liabilities and shareholders' equity $6,55,500 $6,00,000 interest payable Salaries payable Long-term debt Common shares 1,500 2.500 8.000 5,000 2,34,000 2.60,000 1,20,000 1,00,000 Retained earnings 2.65,100 2.07.100 Total liabilities and shareholders' equity $6,55,500 $6,00,000 Additional information: Required: 1 No new long-term debt was taken during the year 2 New equipment was purchased, and none was sold 3 During the year there was a stock dividend declared and issued for $2.000 4 Cash dividends were paid to common shareholders 5 All operating expenses were paid in the period incurred Prepare, in proper form, a Cash Flow Statement for the company for the year-ended December 31, 2020, using the Direct Method and complete the Operating section ONLY for the Indirect Method