Savary Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is as follows:

Additional information:
1. Profit for 2017 was $200,000.
2. Equipment was purchased during the year. No equipment was sold.
3. Cash dividends were paid to the common shareholders during the year.
Instructions
Prepare the cash flow statement using the indirect method.

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SAVARY LIMITED Balance Sheet December 31 2017 2016 S 114,000 $ 85,000 600,000 330,000 25,000 1,000,000 (280,000) $1,760,000 750,000 Accounts receivable Inventory Prepaid insurance Equipment and vehicles Accumulated depreciation Total assets 18,000 1,250,000 (350,000) $2,282,000 Liabilities and Shareholders' Accounts payable Salaries payable Interest payable 200,000 40,000 20,000 350,000 400,000 750,000 $1,760,000 226,000 30,000 26,000 Common shares Retained earnings Total liabilities and shareholders' equity $2,282,000