PROBLEM 2 KHAN CORP. has prepared the following comparative statement of financial position for 2020 and 2021: 2021 2020 Plant assets $1,260,000 $1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153,000 174,000 Prepaid expenses 18,000 27,000 Inventory 150,000 180,000 Receivables 159,000 117,000 Cash 297,000 153,000 $1,587,000 $1,326,000 $ Mortgage payable Accounts payable Accrued liabilities Share capital-Preference Share premium-preference Share capital-ordinary Retained earnings 525,000 120,000 600,000 129,000 $600,000 66,000 450,000 168,000 42,000 $1,326,000 153,000 60,000 $1,587,000 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year. The income statement for 2021 is as follows: Sales Cost of sales Gross profit Operating expenses Net income $1,980,000 1,089,000 891,000 690,000 $ 201,000 Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for KHAN CORP. for the year ended December 31, 2021