Problem $2(21$ Marks$)$

Comparative statements of financial position for Burgundy Bay Ltd$.$ are shown

below: Burgandy adheres to ASPE.

BURGUNDY BAY LTD$.$

Statements of Financial Position

$\_\_\_$December $31\_\_$

$20232022$

Cash $...............................................................................................$ $$33,900$ $$10,200$

Accounts receivable $($net$)...............................................................48,30020,300$

Inventory $........................................................................................42,00042,000$

Long$-$term investments................................................................... $015,000$

Property, plant & equipment........................................................... $236,500150,000$

Accumulated depreciation $..............................................................(37,700)(25,000)$

Total Assets $$323,000$ $$212,500$

Accounts payable $...........................................................................$ $ $19,000$ $$26,500$

Accrued liabilities $...........................................................................19,00017,000$

Long$-$term notes payable $...............................................................70,00050,000$

Common shares $.............................................................................130,00090,000$

Retained earnings $..........................................................................85,00029,000$

Total Liabilities & Shareholders$$ Equity $$323,000$ $$212,500$

Additional information concerning transactions and events during $2023$:

$1.$ Net income was $$90,000.$

$2.$ Sold the long$-$term investments for $$28,000.$

$3.$ Paid cash dividends of $$34,000.$

$4.$ Purchased machinery costing $$26,500,$ paid cash.

$5.$ Purchased machinery by signing a $$60,000$ long$-$term note payable.

$6.$ Extinguished a $$40,000$ long$-$term note payable by issuing common shares.

Instructions

Prepare a statement of cash flows $($indirect method$)$ for calendar $2023$ for

Burgundy Bay Ltd$.$