I'm a bit lost on preparing a SCF for problem 14

The operations of The McKenzie, a small lodging operation, are becoming more complex Ms. Jo Mckenzie the owner, has asked for your help in preparing her statement of cash flows. She is able to present you with condensed balance sheets and some additional 5. Long-term debt was Required: Prepare the Spartan Inn's SCF for 20X2 using the indirect method. Problem 14. information The McKenzie Condensed Balance Sheets December 31, 20X3 and 20X4 20X3 20X4 $ 6,000 25,500 45 $ 10,000 26,500 10,000 200,000 (20,000) $226,500 5,000 325,000+ (40,000), $321,500+ 5.0 Cash Accounts Receivable Investments Equipment Accumulated Depreciation Total Assets Current Liabilities: Accounts Payable Mortgage Payable (Current) Dividends Payable Noncurrent Liabilities: Mortgage Payable $ 18,000 5,000 5,000 $ 21,000+ 1 5,000 5,000 75,000 70,000 40,000 Notes Payable *Equipment that cost $20,000 depreciated to its salvage value of $2,000 and was sold for Additional information for 20X4: Total Liabilities and Owners' Equity Common Stock Retained Earnings Statement of Cash Flows 491 50,000 100,000 73,500 80,500.00 $226,500 $321,500 $ Common stock, purchased as a long term investment for $5,000, was sold for $15,000 $10,000 paid. Dividends declared totaled $15,000. Equipment was purchased for $145,000. 4, Depreciation expense totaled $38,000. a Long-term debt of $5,000 was reclassified as current and $5,000 of long-term debt was sak 7. Common stock of $50,000 was sold and long-term debt of $40,000 (note payable) was borrowed. & The McKenzie generated net income of $22,000. Required: Prepare the SCF as requested by Ms. McKenzie using the indirect method. Challenge Problems