Repeat the requirements of BE22-5 under the indirect method, assuming that Larry€™s Luggage Company reports under IFRS and begins the reconciliation to operating cash flows with income before interest and taxes. Larry€™s Luggage classifies interest paid, interest received, and taxes paid as operating activities.

In BE22-5

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Larry's Luggage Company Balance Sheets At December 31 Property, Plant, and Equipment-net Income Taxes Payable Total Current Liabilities Noncurrent Liabilities Total Noncurrent Liabilities Shareholders Equity Common Stock, $1 par value Total Liabilities and Sharehclders Equity Larmry's Luggage Company Income Statement For the Year Ended December 31 Sales Cost of Goods Sold Gross Profit Selling. General, and Administrative Expenses Depreciation Expense Total Operating Expenses Income Before Interest and Taxes Interest Expense Investment Income Income Before Tax Income Tax Expense Net Income $56,000 33,600 $22,400 $11,600 6,000 $ 17600 $ 4,800 $12,100 634 $ 3.334 (1,334 2,000