Q1 : Prepare a 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).)

Presented below are the financial statements of Ivanhoe Company Ltd IVANHOE COMPANY LTD Comparative Statements of Financial Position December 31 2017 2016 Assets Equipment Accumulated depreciation-equipment Inventory Accounts receivable Cash 59,900 77,090 (23,060) 20,560 19,270 19,300 (29,520) 29,010 32,170 36,180 Total 127,740 113,160 uity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Income taxes payable 17,370 46,730 28,000 28,160 7,480 127,740 14,710 40,300 33,520 16,200 8,430 113,160 Total IVANHOE COMPANY LTD Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 242,870 175,590 67,280 24,480 42,800 3,760 39,040 7,080 E31,960 Additional data 1. Depreciation expense is 13,900 2. Dividends declared and paid were 25,530 3. During the year, equipment was sold for 9,750 cash. This equipment cost 17,190 originally and had accumulated depreciation of 7,440 at the time of sale