Your answer is partially correct. Sunland Ltd., which follows ASPE had the following comparative statement of financial position: Sunland Ltd. Comparative Statement of Financial Position December 31 Assets 2021 2020 Cash $ 82,300 $ 49,400 Accounts receivable 136,000 100,500 Inventory 80,300 121,800 Prepaid insurance 11,900 9,200 Equipment 306,500 257,000 Accumulated depreciation-equipment (73,700) (53,400) Patents 84,000 102,300 Total assets $ 627,300 $ 586,800 Liabilities and Shareholders' Equity Accounts payable $ 90,900 $ 78,000 Notes payable 8,200 12,500 Liabilities and Shareholders' Equity Accounts payable $ 90,900 $ 78,000 Notes payable 8,200 12,500 Salaries and wages payable 16,100 7,900 Income taxes payable 16,500 20,600 Long-term note payable 107,500 125,700 Common shares 286,100 286,100 Retained earnings 102,000 56,000 Total liabilities and shareholders' equity $ 627,300 $ 586,800 Additional information: 1. Net income for the fiscal year was $ 52,000. 2. Equipment that cost $ 40,000 and was 70% depreciated was sold during 2021, for a gain of $3,500. 3. No patents were purchased or sold during the fiscal year. 4. The current Notes Payable are trade payables issued by Sunland Ltd. for the purchase of inventory. Prepare the operating activities section of a statement of cash flows using the indirect format. (Show amounts that a with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) 8 ch al Cash Flows from Operating Activities Net Income /(Loss) $ 52000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $ Gain on Disposal of Equipment Increase in Accounts Receivable 1000! Decrease in Inventory Increase in Prepaid Insurance Increase in Accounts Payable Decrease in Notes Payable Increase in Salaries and Wages Payable Decrease Income Taxes Payable Type here to search Com Question 4 of 5 0. Increase in Accounts Receivable Decrease in Inventory Increase in Prepaid Insurance Increase in Accounts Payable dddd!!! Decrease in Notes Payable Increase in Salaries and Wages Payable Decrease in Income Taxes Payable Cash Flows from Financing Activities $ e Textbook and Media