Use the following information to prepare a statement of cash flows for the year ended October 31, 2017, using the indirect method.

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Sugar Bakery Inc. Income Statement For Year Ended October 31, 2017 Sales....... Operating expenses: Depreciation expense. Other expenses........... Total operating expenses..... Profit (loss).. **********... $5 139 $140 144 $ (4) Sugar Bakery Inc. Comparative Balance Sheet Information Cash......... Accounts receivable (net) ............. Merchandise inventory ................. Machinery (net)* Accounts payable. Accrued liabilities..... ... Long-term notes payable....... Common shares.... Retained earnings** October 31 2017 $25 40 15 75 6 2 40 95 12 2016 $35 45 6 25 2 5 50 38 16 $55 of machinery was purchased during 2017; there were no sales of machinery. **No dividends were declared or paid during 2017.