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Problem #6 The comparative statements of financial position for Malcolm Heights Inc. are presented below: MALCOLM HEIGHTS INC. Comparative Statements of Financial Position Assets Cash Accounts receivable Inventory. Prepaid expenses Investments Property, plant, and equipment Accumulated depreciation Total 2022 $ 68,000 97,000 180,000 5,000 30,000 448,000 (100.000) $728.000 2021 $ 36.000 64,000 140,000 4,000 20,000 400,000 (80,000 $584.000 Liabilities and Shareholders' Equity Accounts payable Accrued expenses payable Bonds payable Common shares Retained earnings Total $ 76,000 20,000 260,000 100,000 272.000 $728.000 $ 68,000 24,000 200,000 150,000 142.000 $584.000 MALCOLM HEIGHTS CORPORATION Statement of Income Year Ended December 31, 2022 $1,000,000 Sales Expenses Cost of goods sold Operating expenses (excluding depreciation). Depreciation expense Interest expense. Loss on sale of property, plant, and equipment Income before income tax Income tax expense Net income. $580,000 180,000 30,000 18,000 8,000 816.000 184.000 34.000 $ 150.000 Additional information regarding fiscal 2022 1. New property, plant, and equipment costing $66,000 was purchased for cash. 2 Old property, plant, and equipment costing $18,000 was scrapped when the carrying amount was $8,000 3. A cash dividend of $20,000 was declared and paid during the year. 4 Accounts payable pertain to merchandise purchases and accrued expenses pertain to operating expenses Instructions Prepare the statement of cashflows using the direct method. (25 marks)