QUESTION 3 (25) A comparative balance sheet for B.C. Lad. is presented as follows: Balance Sheet 2021 2020 Assets $ $ Cash 300 490 Accounts receivable 1,070 410 Inventory 1,350 1.580 Equipment 5,150 3.190 Loss: Accum. Depreciation (800) (1.000) Liabilities Accounts payable 810 370 Accrued expense 50 80 Bonds payable (Long-term) 1,600 770 Shareholder's Equity Common shares 3,590 2.590 Retained earnings 1,020 860 Income Statement Revenues Sales 2021 $ 13,330 2020 $ 11,280 Expenses and others Cost of goods sold Other expenses Depreciation expense Loss on sale of old equipment Net income 9.620 1,950 180 350 8,550 1.620 160 0 1,230 950 During 2021, the company sold some of their old equipment. $2,800 of new equipment items were acquired by Issuing common shares of S650, and the balance paid with cash. 3 2021 Optional table (no marks will be given to this table) 2020 Cash Accounts Receivable Inventory Equipment Accumulated Dep Accounts Payable Accrued Expenses Bonds Payable Common Shares Retained Earnings Required: Use Direct method to prepare in good form the 2021 Statement of Cash Flows for the company (Cash flows from operating activities and financing activities ONLY)