Coyote Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2024 and 2023. 

Additional information: 

1. Profit for 2024 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 mortgage note payable. 

5. No equipment was sold during 2024. 

Instructions 

Prepare a cash flow statement for the year using the indirect method. 

Is it unfavorable for a company to have a net cash outflow from financing activities?

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Assets Cash Accounts receivable Inventory Prepaid expenses Land COYOTE LTD. Balance Sheet May 31 Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Mortgage payable Common shares Retained earnings Total liabilities and shareholders' equity 2024 $ 12,600 85,000 172,000 5,000 125,000 325,000 (68,250) $656,350 $ 43,000 7,500 2,500 125,000 217,000 261,350 $656,350 2023 $ 43,000 76,000 160,000 7,500 75,000 190,000 (40,000) $511,500 $ 38,000 5,000 6,000 80,000 167,000 215,500 $511,500