Using the following information, prepare the statement of cash flows for Harley Holdings Ltd. for the year ended January 31, 2016, using either method.

Additional information:
1. Equipment costing $35,000 was sold for $14,000.
2. Land was sold at cost and none was purchased during the year.

HARLEY HOLDINGS LTD Statement of Financial Position As at January 31 2016 2015 Assets Current assets S 50,000 86,800 95,600 232,400 175,000 (43,500) 120,000 483,900 $36,500 55,000 101,700 193,200 145,000 (39,000) 170,000 $469,200 Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation, equipment Land Liabilities and Shareholders' Equity Current liabilities: Accounts payable Dividends payable Total current liabilities Bank loan payable Common shares Retained earnings S 45,300 13,000 58,300 100,000 150,000 175,600 $ 483,900 $62,200 5,000 67,200 140,000 130,000 132,000 $469,200 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2016 Sales revenue Cost of goods sold Gross profit $435,000 295,000 140,000 Expenses Wages expense Depreciation expense Rent expense Income tax expense $15,200 26,500 15,100 14,700 Operation income Gain on sale of equipment Net income 71,500 68,500 1,000 69,500