Presented below are the comparative statements of financial position for Vernet Company Ltd. at December 31.

Additional information:
1. Operating expenses include depreciation expense £57,000 and charges from prepaid expenses of £4,400.
2. Land was sold for cash at cost for £35,000.
3. Cash dividends of £82,940 were paid.
4. Net income for 2017 was £70,000.
5. Equipment was purchased for £80,000 cash. In addition, equipment costing £40,000 with a book value of £31,000 was sold for £34,000 cash.
6 Issued 25,000 ordinary shares with a £1 par value for land with a fair value of £25,000.
Instructions
Prepare a statement of cash flows for 2017 using the indirect method.

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VERNET COMPANY LTD Comparative Statements of Financial Position December 31 Assets Land Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Prepaid expenses Inventory Accounts receivable Cash 2017 £140,000 215,000 (70,000) 250,000 (70,000) 12,140 170,000 77,000 41,460 £765,600 2016 £150,000 175,000 (42,000) 250,000 (50,000) 16,540 140,000 64,000 57,000 £760,540 Total Equity and Liabilities Share capital-ordinary, £1 par Retained earnings Bonds payable Accounts payable C275,000 187,600 265,000 38,000 £765,600 £250,000 200,540 265,000 45,000 £760,540 Total