Prepare a statement of cash flows using the direct method. Then prepare a reconciliation of net income to cash flow from operating activities.

U$2$ Company Income Statemnet

For the Year Ending December $31,2023$

Gain on Sale of Equipment $15,000$

Income Tax Expense $\backslash ((22,000)\backslash )$

Net Income

$72,220$

Equipment with an original cost of $\backslash (\backslash$$ $\backslash$mathbf$\{50,000\}\backslash )$ and $\backslash (\backslash$mathbf$\{40\backslash \%\}\backslash )$ depreciated was sold.

Assume that all purchases and sales of inventory are on account.