722 CHAPTER 10 Prepare cash flow statement-indirect method. (SO 2) AP THE CASH FLOW STATEMENT Instructions Prepare a cash flow statement for the year using the direct method. TAKING IT FURTHER Indicate what transactions might be classified differently if the company w reporting under IFRS instead of ASPE P16-7A Condensed financial data follow for Lancer Ltd. LANCER LTD. Balance Sheet December 31 2014 2013 Assets Cash $ 97,800. Accounts receivable 75,800 $ 48,400 43,000 122,500 92,850 Inventory 38,400 26,000 Prepaid expenses Property, plant, and equipment 398,000 356,500 (50,000) Accumulated depreciation (52,000) $682,500 $514,750 Total assets Liabilities and Shareholders' Equity Accounts payable $107,000 $ 77,300 Accrued expenses payable 11,500 7,000 Notes payable (non-trade) 110,000. 150,000 Common shares 220,000 175,000 Retained earnings 234,000 105,450 Total liabilities and shareholders' equity $682,500 $514,750 Accounts payable Accrued expenses payable Common shares 11,500 74000 110,000 150,000 Notes payable (non-trade)) 220,000 234,000 175,000 105,450 Retained earnings 5682,500 $514,756 Total liabilities and shareholders' equity Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Loss on sale of equipment Profit from operations Other expenses Interest expense Profit before income tax Income tax expense Profit LANCER LTD. Income Statement Year Ended December 31, 2014 $492,780 185,460 307,320 $62,410 46,500 7,500 116.410 190,910 4,730 186,180 45,000 $141,180 Additional information: 1. New equipment costing $99,000 was purchased for $39,000 cash and a $60,000 note payable. 2. Equipment with an original cost of $57,500 was sold at a loss of $7,500. 3. Notes payable matured during the year and were repaid