P22-1 (L02,4) (SCF - Indirect Method) The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 20X2 and 20X1. Cash Accounts receivable Inventory Long-term Investment Property, plant, and equipment Accumulated depreciation Patent Total assets COMPARATIVE BALANCE SHEETS Accounts payable Income taxes payable Dividends payable Mortgage Note Payable Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity Additional information: 20X2 $ 815,000 1,128,000 1,870,000 310,000 3,307,000 (1,165,000) 250,000 $6.515.000 $1,015,000 30,000 80,000 150,000 520,000 1,750,000 2.970,000 $6.515.000 20X1 $ 700,000 1,168,000 1,715,000 275,000 2,967,000 (1,040,000) $5.785.000 $ 955,000 50,000 100,000 -- 500,000 $1,500,000 2,680,000 $5.785,000 1. The Long-term Investments are equity investments purchased by Sullivan Corp. at the end of 20X1 for $275,000. Sullivan purchased an additional $35,000 of equity investments in 20X2. 2. During 20X2, Sullivan purchased a patent for $260,000. The Patent account was adjusted at year-end to $250,000 to recognize amortization. 3. On January 2, 20X2, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. 4. On December 31, 20X2, Sullivan purchased an office building. Of the total purchase price, $150,000 was financed with a Mortgage Note Payable. The remainder was paid in cash. 5. Net income for 20X2 was $370,000. I Instructions: Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 20X2, using the indirect method.

P22-1 (LO2, A) (SCF - Indirect Method) The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 202 and 201. Additional information: 1. The Long-term investments are equily investments purchased by Sullivan Corp. at the end of 201 for $275,000. Sullivan purchased an additional $35,000 of equity investments in 202. 2. During 202, Sullivan purchased a patent for $260,000. The Patent account was adjusted at vear-end to $250,000 to recognize amortization. 3. On January 2,202, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. 4. On December 31, 20K2, Sullivan purchased an office bullding. Of the total purchase price, $150,000 was financed with a Mortgage Note Payable. The remainder was paid in cash. 5. Net income for 202 was $370,000. Instructions: Prepare a statement of cash flows for Sullivan Corp, for the vear ended December 31, 20X2, using the Indirect method