You have completed the field work in connection with your audit of Ivanhoe Corporation for the year en balance sheet accounts at the beginning and end of the year are shown below. Allowance for doubtful accounts 38,47743,600 (5,123) Accumulated depreciation-buildings 462,160436,00026,160 Accumulated depreciation-machinery 188,570141,70046,870 Premium on bonds payable Common stock-no par Paid-in capital in excess of par-com Retained earnings-unappropriated Statement of Retained Earnings For the Year Ended December 31, 2025 January 1.2025 Balance (deficit) March 31, 2025 Net income for first ouarterof 2025 Statement of Retained Earnings For the Year Ended December 31, 2025 Your working papers from the audit contain the following information: 1. On April 1, 2025, the existing deficit was written off against paid-in capital created by reducing the stated value of the no-par stock. 2. On November 1,2025,32,264 shares of no-par stock were sold for $280,130. The board of directors voted to regard $5 per share as stated capital. 3. Apatent was purchased for $16.350 4. During the year, machinery that had a cost basis of $17,876 and ormwich there was accumulated depreciation of $5,668 was sold for $9,810. No other plant assets were sold during the year. 5. The 12\%, 20-year bondswere dated and issued on January 2, 2013. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were redeemed at 100.9 plus acerued interest on March 31,2025. 6. The 8%,40-year bonds were dated January 1, 2025, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $915 7. Ivanhoe Corporation acquired 70% control in Crimson Company on January 2, 2025, for $109,000. The income statement of Crimson Company for 2025 shows a net income of $16,350. 8. Major repairs to buildings of $7,848 were charged to Accumulated Depreciation-Building5. 7. Ivanhoe Corporation acquired 70% control in Crimson Company on January 2, 2025, for $109,000, The income statement Crimson Company for 2025 shows a net income of $16,350. 8. Major repairs to buildings of $7,848 were charged to Accumulated Depreciation-Buildings. 9. Interest paid in 2025 was $11,445 and income taxes paid were $37,060. From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight-line amortization f bond interest. (Round answers to 0 decimal places, e.s. 2,500. Show aounts that decrease cash flow with either a-sign e.s 15,000 or in parenthesis e.g. (15,000).) From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary principal computations should be supported by schedules or general ledger accounts. The company uses straight-line a bond interest. (Round answers to 0 decimal places, e.g. 2,500. Show amounts that decrease cash flow with eithe 15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities \begin{tabular}{|l|l|} \hline Amortiration of Patents & $10.900 \\ \hline \end{tabular} Loss on Sale of Machinery Depreciation of Machinery Gain on Redemption of Bonds Amortization of Bond Premium Amortization of Bond Discount: investment in Subsidiary Depreciation of Building therease in Accounts Receivable (Net) You have completed the field work in connection with your audit of Ivanhoe Corporation for the year en balance sheet accounts at the beginning and end of the year are shown below. Allowance for doubtful accounts 38,47743,600 (5,123) Accumulated depreciation-buildings 462,160436,00026,160 Accumulated depreciation-machinery 188,570141,70046,870 Premium on bonds payable Common stock-no par Paid-in capital in excess of par-com Retained earnings-unappropriated Statement of Retained Earnings For the Year Ended December 31, 2025 January 1.2025 Balance (deficit) March 31, 2025 Net income for first ouarterof 2025 Statement of Retained Earnings For the Year Ended December 31, 2025 Your working papers from the audit contain the following information: 1. On April 1, 2025, the existing deficit was written off against paid-in capital created by reducing the stated value of the no-par stock. 2. On November 1,2025,32,264 shares of no-par stock were sold for $280,130. The board of directors voted to regard $5 per share as stated capital. 3. Apatent was purchased for $16.350 4. During the year, machinery that had a cost basis of $17,876 and ormwich there was accumulated depreciation of $5,668 was sold for $9,810. No other plant assets were sold during the year. 5. The 12\%, 20-year bondswere dated and issued on January 2, 2013. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were redeemed at 100.9 plus acerued interest on March 31,2025. 6. The 8%,40-year bonds were dated January 1, 2025, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $915 7. Ivanhoe Corporation acquired 70% control in Crimson Company on January 2, 2025, for $109,000. The income statement of Crimson Company for 2025 shows a net income of $16,350. 8. Major repairs to buildings of $7,848 were charged to Accumulated Depreciation-Building5. 7. Ivanhoe Corporation acquired 70% control in Crimson Company on January 2, 2025, for $109,000, The income statement Crimson Company for 2025 shows a net income of $16,350. 8. Major repairs to buildings of $7,848 were charged to Accumulated Depreciation-Buildings. 9. Interest paid in 2025 was $11,445 and income taxes paid were $37,060. From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight-line amortization f bond interest. (Round answers to 0 decimal places, e.s. 2,500. Show aounts that decrease cash flow with either a-sign e.s 15,000 or in parenthesis e.g. (15,000).) From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary principal computations should be supported by schedules or general ledger accounts. The company uses straight-line a bond interest. (Round answers to 0 decimal places, e.g. 2,500. Show amounts that decrease cash flow with eithe 15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities \begin{tabular}{|l|l|} \hline Amortiration of Patents & $10.900 \\ \hline \end{tabular} Loss on Sale of Machinery Depreciation of Machinery Gain on Redemption of Bonds Amortization of Bond Premium Amortization of Bond Discount: investment in Subsidiary Depreciation of Building therease in Accounts Receivable (Net)