Shankman Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is as follows: 

Additional information:

1. Profit for 2014 was $200,000 

2. Equipment was purchased during the year. No equipment was sold.

3. Cash dividends were paid to the preferred share holders during the year.

Instructions

Prepare the cash flow statement using the indirect method?

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SHANKMAN LIMITED Balance Sheet December 31 Assets 2014 2013 $ 114,000 Cash 85,000 Accounts receivable 750,000 600,000 Inventory Prepaid insurance Equipment and vehicles Accumulated depreciation 500,000 330,000 18,000 25,000 1,250,000 (350,000) 1,000,000 (280,000) $ 1,760,000 Total assets $2,282,000 Liabilities and Shareholders' Equity Accounts payable Salaries payable Interest payable Notes payable (non-trade) Preferred shares $ 226,000 30,000 26,000 $ 200,000 40,000 20,000 350,000 500,000 200,000 Common shares 400,000 400,000 750,000 Retained earnings 900,000 Total liabilities and shareholders' equity $2,282,000 $1,760,000