Canyon Canoe Company’s comparative balance sheet is shown below. Amounts for 2024 are assumed, but include several transactions from prior chapters.

Additional data follow:

1. The income statement for 2024 included the following items:

a. Net income, $417,000.

b. Amortization expense for the year, $34,330.

c. Amortization of discount on the bonds payable, $254.

2. There were no disposals of property, plant, and equipment during the year. All acquisitions of property, plant, and equipment were for cash except the land, which was acquired by issuing preferred shares.

3. The company issued bonds payable with a face value of $210,000, receiving cash of $208,476.

4. All dividends were paid in cash.

5. The common shares were issued for cash.

6. The cash receipt from the note payable in 2024 is considered a financing activity because it does not relate to operations.

Required

Prepare the statement of cash flows for the year ended December 31, 2024, using the indirect method.

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CANYON CANOE COMPANY Comparative Balance Sheet December 31, 2023 and 2024 Assets 2024 2023 Current assets Cash $ 523,693 $ 12,125 Short-term investments, net 23,840 Accounts receivable, net 2,422 7,600 Inventory Office supplies Prepaid rent Property, plant, and equipment 355 60 165 2,000 Land 155,000 85,000 Building 610,000 35,000 Canoes 12,000 12,000 Office furniture and equipment 150,000 Less: Accum. amort. furn. and equip. 35,180 850 Total assets $ 1,442,190 $153,040 Liabilities Current liabilities $ 3,670 Accounts payable Salaries payable Note payable Interest payable 6,640 4,250 1,250 15,000 350 50 Unearned revenue 500 350 Long-term liabilities Note payable Mortgage payable Bonds payable Discount on bonds payable 7,200 7,200 405,000 210,000 (1,270) Total liabilities 647,670 12,520 Shareholders' Equity Preferred shares 70,000 Common shares 336,000 136,000 Retained earnings Total shareholders' equity 388,520 4,520 794,520 140,520 Total liabilities and shareholders' equity $ 1,442,190 $153,040