Brigitte€™s Bathrooms Ltd. balance sheet for the year ended December 31, 2016, follows:

Additional information:

• During the year, Brigitte declared and paid cash dividends of $50,000. They also declared and distributed stock dividends valued at $20,000.
• Brigitte bought and sold land during the year. The land that was sold for $200,000 originally cost $250,000.
• Brigitte€™s long-term investment consists of holding ordinary shares in one company (GFF Services Inc.). For most of the year, Brigitte owned 50,000 of the 200,000 ordinary shares outstanding. GFF€™s net income for the year (which ended December 15) was $40,000. GFF€™s income from December 16 to December 31 was not material. The company paid dividends of $100,000 on December 15. Brigitte bought additional shares in GFF on December 31.
• A gain of $25,000 was realized on the sale of a building that cost $200,000. Accumulated depreciation at time of sale was $150,000.
• Brigitte borrowed money from a finance company, which accounted for the increase in notes payable.
• The company€™s expenses for the year included $40,000 for income tax and $30,000 for interest.
• Brigitte€™s policy is to report investment income and interest paid in the cash flows from operating activities section, while dividends paid are classified as a cash outflow from financing activities.

Required:
a. Prepare a statement of cash flows for Brigitte€™s Bathrooms Ltd. for 2016 using the indirect method.
b. Identify what supplemental disclosure, if any, is required.

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Brigitte's Bathrooms Ltd. Comparative Balance Sheet As at Year Ended December 31, 2016 2016 2015 Assets: $ 17,000 $ 43,000 Cash Accounts receivable 104,000 90,000 Inventory 80,000 65,000 Prepaid expenses 48,000 45,000 Current assets 249,000 243,000 Land 551,000 310,000 Buildings 860,000 810,000 Accumulated depreciation (250,000) (220,000) Long-term investment (equity) 84,000 90,000 $1,494,000 $1,233,000 Total assets Liabilities and shareholders' equity $ 50,000 $ 60,000 Accounts payable Accrued interest payable 5,000 2,000 Notes payable 145,000 132,000 Current liabilities 197,000 197,000 Long-term bank loan 600,000 400,000 Deferred income taxes payable 20,000 10,000 Total liabilities 817,000 607,000 Preferred shares 100,000 Ordinary shares 285,000 210,000 Retained earnings 392,000 316,000 Total equity 677,000 626,000 Total liabilities and shareholders' equity $1,494,000 $1,233,000