10 The comparative unclassified statement of financial position for Cullumber Ltd. follows: CULLUMBER LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $55,000 $22,000 Accounts receivable 83,000 74,500 Inventory 177,000 191,500 Long-term investments 76,000 125,000 Equipment 250,000 188,000 Accumulated depreciation (65,000) (30,000) Total assets $576,000 $571,000 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares $32,000 $45,000 114,000 218,000 215,000 170,000 215,000 138,000 Retained earnings Total liabilities and shareholders' equity $576,000 $571,000 Additional information: 1. Net income was $119,000. 2. Sales were $984,000. 3. Cost of goods sold was $759,000. 4. 5. Operating expenses were $43,000, exclusive of depreciation expense. Depreciation expense was $35,000. 6. Interest expense was $12,000. 7. Income tax expense was $22,000. 8. 9. 10. Long-term investments were sold at a gain of $6,000. No equipment was sold during the year. $104,000 of the bank loan was repaid during the year. 1. Net income was $119,000. 2. Sales were $984,000. 3. Cost of goods sold was $759,000. 4. 5. Operating expenses were $43,000, exclusive of depreciation expense. Depreciation expense was $35,000. 6. Interest expense was $12,000. 7. Income tax expense was $22,000. 9. No equipment was sold during the year. 8. Long-term investments were sold at a gain of $6,000. 10. 11. $104,000 of the bank loan was repaid during the year. Common shares were issued for $45,000. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with e CULLUMBER LTD. Statement of Cash Flows-Direct Method Cash payments $ $