Use the attached financial statements below and the additional information to prepare a Statement of Cash Flows using the indirect method.

Mistletoe Inc.

Statement of Financial Position

As at December 31^st, 2021

Assets		2021	2020
Current
Cash		$78,200	$39,000
FVPL Investments		110,600	54,000
Accounts receivable		144,000	72,000
Allowance for doubtful accounts		(32,000)	(21,000)
Inventory		90,000	117,000
Total current assets		$390,800	$261,000
Long-Term Assets
Land		$180,000	$144,000
Buildings		315,000	270,000
Equipment		264,000	185,000
Accumulated depreciation		(130,000)	(164,000)
Total long-term assets		629,000	435,000
Total assets		$1,019,800	$696,000
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable		$45,000	$72,000
Income tax payable		32,400	27,000
Deferred tax liability		81,000	72,000
Total current liabilities		158,400	171,000
Bonds payable (net of discount)		174,600	171,000
Total liabilities		$343,000	$342,000
Shareholders’ Equity
Common shares		$340,000	$93,000
Retained earnings		346,800	261,000
Total Shareholders’ Equity		686,800	354,000
Total Liabilities and Shareholders’ Equity		$1,019,800	$696,000

Mistletoe Inc.

Income Statement

For the year ended December 31^st, 2021

Sales		$1,200,000
Cost of goods sold		900,000
Gross profit		300,000
Operating expenses		342,200
Operating income		(42,200)
Non-operating items:
Unrealized loss on FVPL investment	5,400
Interest on bond payable	25,200
Gain on sale of land and building	(234,000)
Total non-operating items		(203,400)
Income before tax expense		161,200
Tax expense		54,000
Net income		$107,200

Additional Information:

• On January 1, 2021, the company sold its original land and building and purchased a new parcel of land, which also had a suitable building. The original land and building had a net book value of $324,000 at the time of sale.
• The value of the new land acquired was $180,000.
• No fair value through profit or loss (FVPL) investments were sold during the year.
• Operating expenses includes selling and administrative expenses, bad debt expense and depreciation. Selling and Admin expenses totalled $275,200 and were paid in cash.
• There were no accounts receivables were written off throughout the year.
• The company acquired equipment by issuing shares for $50,000 and the remainder was paid in cash.
• The company repurchased common shares for $125,000 cash throughout the year. All other shares issued were issued for cash.
• The company has elected to record dividends paid as financing activities and interest expense as operating activities.
• The change in the Bond Payable account is due to the amortization of the bond discount throughout the year. Bonds payable are shown net of the discount on the balance sheet.

Required:

1. Prepare the summary statement of cash flows using the indirect method