Refer to the data in A5-6.

Data from A5-6

The financial statements for Linked Ltd. are shown below:

During the year, the company purchased a capital asset valued at $30,000; payment was made by issuing common shares. Additional capital assets were acquired for cash. Changes in other accounts were typical transactions.

Required:
Prepare the complete SCF, in good form, using the direct method in the operating activities section. Include required note disclosure of non-cash transactions. Omit the separate disclosure of cash flow for interest, investment income, and income tax.

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Statement of Comprehenslve Income For the year ended 31 December 20X5 Sales revenue $1,821,300 Investment revenue 37,500 Operating expenses, including cost of goods sold 793,200 Depreciation expense 105,000 Goodwill impairment 116,100 Administrative expenses 621,000 Interest expense 45,300 Gain on sale of investment 6,000 Income tax expense 73,800 Net earnings and comprehensive income $ 110.400 Statement of Financlal Position As of 31 December 20X5 20X4 Assets $ 82,500 $ 90,000 Cash Accounts receivable 307,500 210,000 Merchandise inventory 694,200 630,000 Prepaid insurance 7,800 19,200 Investments 75,000 120,000 Land 270,000 270,000 Capital assets, net of accumulated depreciation 1,434,000 930,000 Goodwill, net of impairment 173,700 289,800 $3.044.700 $2,559,000