The comparative unclassified statement of financial position for Puffy Ltd. follows:

Additional information:
1. Profit was $115,000.
2. Sales were $978,000.
3. Cost of goods sold was $751,000.
4. Operating expenses were $43,000, exclusive of depreciation expense.
5. Depreciation expense was $34,000.
6. Interest expense was $14,000.
7. Income tax expense was $26,000.
8. Land was sold at a gain of $5,000.
9. No equipment was sold during the year.
10. $50,000 of the bank loan was repaid during the year.
11. Common shares were issued for $25,000.
Instructions
Prepare a statement of cash flows using
(a) The indirect method, or
(b) The direct method, as assigned by your instructor?

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PUFFY LTD Statement of Financial Position December 31 2015 2014 $22,000 76,000 189,000 100,000 200,000 (32,000 $555,000 53,000 Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets 185,000 70,000 265,000 $587,000 Liabilities and Shareholders' Equi Accounts payable Bank loan payable Common shares 39,000 150,000 199,000 199,000 $587,000 47,000 200,000 174,000 134,000 $555,000 Total liabilities and shareholders equity