Refer to the financial information given in E13.7 for Puffy Ltd.

In E13.7

Instructions
Prepare a statement of cash flows using the direct method.

PUFFY LTD Statement of Financial Position December 31 2018 2017 Assets Cash Accounts receivable Inventory Long-term investments Equipment Accumulated depreciation Total assets $ 53,000 22,000 80,000 76,00o 185,000189,00o 70,000 100,000 265,000 200,0o0 (66,000 (32,000) $587,000 $555,0oo ies Accounts payable Bank loan payable Common shares Retained earnings ar er $39,000 $47,000 150,000 200,000 199,000 174,000 199,000 134,000 Total liabilities and shareholders' equity $587,000 $555,000o