Question 3 [40 points] Below is the comparative statement of financial position for Segura Corporation, a company that reports under IFRS. In addition, Segura Corporation's income statement for 2017 is presented. 1. Equipment at a net book value of $10,000 was sold for cash during the year. It was originally purchased for $10,900. 2. During fiscal 2017, the company declared and paid cash dividends. Share dividends were also declared and distributed ($1,700). 3. During fiscal 2017, a trademark was purchased for $2,900 cash. 4. The company uses the equity in earnings method to account for its 35% shares investment in associate, Zcom Inc. No shares were purchased or sold during the year. 5. Segura Corporation paid $16,000 cash to retire common shares which had an average cost of $11,000. Prepare a statement of cash flows using the indirect method. Be sure to include the two subheadings in the operating activities section regarding the adjustments to net income for non-cash items and the cash in (out) from the working capital accounts. Please make sure your final answer(s) are accurate to 2 decimal places. (34,200) Segura Corporation Balance Sheet Aug 31, 2017 Aug 31, 2016 Cash $47,200 $67,300 Accounts receivable, net 28,300 30,200 Inventory. 23,200 23,000 HTM investments 10,500 16,600 Investment, Zcom Inc. 29,300 27,400 Trademark 2,900 0 Equipment. 27,300 24,200 Accumulated depreciation, equipment 29,300 2,000 Total assets $139,400 S186,700 Accounts payable $15,800 $17,600 Income tax payable 13,600 13,600 Dividends payable 29,700 28,000 Bonds payable 47,200 47,200 Common shares 23,300 27,600 Contributed surplus 800 5,800 Retained earnings 9,000 46,900 Total liabilities and shareholders' equity. $139,400 $186,700 28,200 (1,200) (800) (7,000) Segura Corporation Statement of Cash Flows For the Year Ended August 31, 2017 * Cash flows from operating activities X + Net loss X + Non-cash items (adjusted from net income) Depreciation expense x + Gain on sale of long-term investment x Gain on sale of equipment XEquity in earnings, Zcom Inc. x + Cash in (out) from operating working capital X + Decrease in accounts receivable x + Increase in inventory. XDecrease in account payable x + Net cash from operating activities x + Cash flows from investing activities xCash received from sale of equipment X Cash paid to purchase trademark x + Cash received from sale of HTM investment x Cash dividends received, equity investment, Zcom Inc. 1,900 (200) (1,800) (15,100) (2,900) Segura Corporation $82,800 39,200 43,600 Income Statement For the Year Ended August 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $28,200 Salaries expense 20,600 Other expenses 28,800 Operating loss Other revenues and expenses Investment income (loss), Zcom Inc. 7,000 Gain on sale of HTM investment 1.200 Gain on sale of equipment 800 Interest expense (9,200) Net loss 77,600 (34,000) (200) ($34,200)