Problem 17-9A (b) (direct method)

Condensed financial data follow for Ivanhoe Ltd. E- Perform reports under ASPE.

IVANHOE LTD. Balance Sheet December 31
Assets		2017		2016
Cash		$107,950		$46,200
Accounts receivable		75,500		42,700
Inventory		125,100		91,700
Prepaid expenses		38,300		24,600
Long-term investments		127,600		113,600
Property, plant, and equipment		271,900		244,000
Accumulated depreciation		(52,700	)	(52,500	)
Total assets		$693,650		$510,300
Liabilities and Shareholders Equity
Accounts payable		$91,800		$77,600
Accrued expenses payable		13,000		6,000
Notes payable		121,200		149,100
Common shares		236,400		180,900
Retained earnings		231,250		96,700
Total liabilities and shareholders equity		$693,650		$510,300

IVANHOE LTD. Income Statement Year Ended December 31, 2017
Sales				$490,700
Cost of goods sold				185,000
Gross profit				305,700
Operating expenses		$57,700
Depreciation expense		45,000
Loss on sale of equipment		8,670		111,370
Profit from operations				194,330
Other expenses
Interest expense				4,850
Profit before income tax				189,480
Income tax expense				42,300
Profit				$147,180

Additional information:
1.		New equipment costing $84,500 was purchased for $31,400 cash and a $53,100 note payable.
2.		Equipment with an original cost of $56,600 was sold at a loss of $8,670.
3.		Notes payable matured during the year and were repaid.
4.		A long-term investment was acquired for cash.
5.		Accounts payable relate only to merchandise creditors.
6.		Accrued expenses payable and prepaid expenses relate to operating expenses.

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