Coyote Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2017 and 2016.

Additional information:
1. Profit for 2017 was $108,000.
2. Common shares were issued for $50,000.
3. Land with a cost of $50,000 was sold at a loss of $20,000.
4. Purchased land with a cost of $100,000 with a $55,000 down payment and financed the remainder with a mort- gage note payable.
5. No equipment was sold during 2017.
Instructions
Prepare a cash flow statement for the year using the indirect method.
TAKING IT FURTHER
Is it unfavourable for a company to have a net cash outflow from financing activities?

Transcribed Image Text:

COYOTE LTD. Balance Sheet May 31 3 Accounts receivable Accumulated depreciation Liabilities and Shareholders' Equit Accounts payable Income taxes payable 1 2 Total liabilities and shareholders' equity