To prepare a statement of cash flows using the direct method

The income statement and unclassified statement of financial position for Carla Vista, Inc. follow: CARLA VISTA INC. Statement of Financial Position December 31 Assets 2018 Cash $97.000 Held for trading investments 127.000 Accounts receivable 76,500 Inventory 123.000 Prepaid expenses 18,600 Property, plant, and equipment 299.000 Accumulated depreciation 147.000) Total assets $694,100 Liabilities and Shareholders'Equity Accounts payable $100,000 Accrued liabilities 10,400 Bank loan payable 51.700 Common shares 290,000 Retained earnings 242.000 Total liabilities and shareholders' equity $694,100 2017 $47.300 116,000 41.500 92.800 27.800 277,500 (53,000) $549.900 $74.300 7.900 195,200 155,000 117.500 $549.900 CARLA VISTA, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $11,000 Interest expense 14.790) Income before income tax Income tax expense Net income $586.050 188.100 397.950 116.500 281450 6.210 287660 42.000 $245,660 Additional information: 1 Prepaid expenses and accrued liabilities relate to operating expenses. 2 An unrealized gain on held for trading investments of $11,000 was recorded. 3. New equipment costing $86,000 was purchased for $22.300 cash and a $63,700 long-term bank loan payable 4. Old equipment having an original cost of $64,500 was sold for $1,500. 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. & Operating expenses include $46,400 of depreciation expense and a $10.600 loss on disposal of equipment