Question 4: (20 marks)

The partial comparative balance sheets of High Movie Company at March 31, 2021, reported the following:

March 31

2021

2020

Current assets:

Cash and cash equivalents

$7,000

$16,000

Accounts receivable

14,800

22,200

Inventories

63,900

60,700

Prepaid expenses

3,400

1,600

Current liabilities:

Accounts payable

57,700

55,300

Accrued liabilities

14.600

16,700

Income tax payable

14,400

10,800

High's transactions and results for the year ended March 31, 2021 also included the following:

Acquisition of land by issuing note payable$101,000

Payment of cash dividend31,000

Cash purchase of equipment78,600

Issuance of long-term note payable to borrow cash45,000

Sale of long-term investment for cash13,300

Depreciation expense15,000

Cash purchase of building44,000

Net income57,000

Issuance of common shares for cash8,000

Share dividend18,000

Required:

Prepare High Movie Company's statement of cash flows for the year ended March 31, 2021, using the indirect method to report cash flows from operating activities.