Laker Ltd., a public company, had the following information available at the end of \(20 \times 5\) :

Required:
Prepare a statement of cash flows, using the indirect method to disclose operating activities.

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Comparative balance sheets, as of 31 December 20X5 20X4 Cash $ 3,000 $ 800 Inventory Accounts receivable Prepaid rent Prepaid insurance Office supplies Net lease receivable 3,500 2,590 8,400 7,000 600 2,400 420 180 200 150 25,000 35,000 Land and building 70,000 70,000 Accumulated depreciation (21,000) (17,500) Equipment 105,000 80,000 Accumulated depreciation Patent Total assets Accounts payable Taxes payable Wages payable Short-term notes payable (26,000) (22,400) 9,000 $178,120 1,000 1,000 600 2,000 2,000 Long-term notes payable 12,000 14,000 Bonds payable 80,000 80,000 Premium on bands payable 4,060 5,170 Common shares 48,000 41,500 Retained earnings 24,660 17,750 Total liabilities and equity $178,120 $168,220 *Not cash equivalents $ 5,400 10,000 $168,220 $ 6,400 800