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

Additional information:
1. Net income 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. Long-term investments were 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 the indirect method.

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PUFFY LTD Statement of Financial Position December 31 2018 2017 Assets Cash Accounts receivable Inventory Long-term investments Equipment Accumulated depreciation Total assets $ 53,000 22,000 80,000 76,00o 185,000189,00o 70,000 100,000 265,000 200,0o0 (66,000 (32,000) $587,000 $555,0oo ies Accounts payable Bank loan payable Common shares Retained earnings ar er $39,000 $47,000 150,000 200,000 199,000 174,000 199,000 134,000 Total liabilities and shareholders' equity $587,000 $555,000o