Problem 13-2A a

The income statement for Ivanhoe Ltd., a private company following ASPE, is presented here:

IVANHOE LTD. Income Statement Year Ended November 30, 2018
Sales		$8,100,000
Cost of goods sold		4,300,000
Gross profit		3,800,000
Operating expenses		2,040,000
Income from operations		1,760,000
Interest expense		150,000
Income before income tax		1,610,000
Income tax expense		400,000
Net income		$1,210,000

Additional information:

1.		Operating expenses include $79,000 of depreciation expense and a $103,000 impairment loss on property, plant, and equipment.
2.		Accounts receivable increased by $187,000.
3.		Inventory decreased by $55,000.
4.		Prepaid expenses related to operating expenses increased by $42,000.
5.		Accounts payable to suppliers of merchandise decreased by $189,000.
6.		Accrued liabilities related to operating expenses decreased by $90,000.
7.		Interest payable decreased by $10,000.
8.		Unearned revenue that was received from customers decreased by $21,000.
9.		Income tax payable increased by $28,000.

(a) (a) Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

IVANHOE LTD. Statement of Cash Flows (Partial)-Indirect Method Year Ended November 30, 2018
Operating activities
Adjustments to reconcile net income to