Additional information 1 Net income was $32,000 in 2018 2 Depreciation expense was $15,000 in 2018 3 In 2018, no new bank loans were received 4 In 2018, no furniture was purchased, but some furniture was sold for $8,000, which resulted in a gain on this disposal of $4,000 5 No common shares were issued during the year but some were reacquired at the cost at which they were originally issued In 2018, dividends were declared and paid Prepare a statement of cash flows using the indirect method for 2018 (Show amounts that decrease cash flow with either a sign e g 15,000 or in parenthesis e g (15,000) ) The comparative statement of financial position for Wildhorse Retailers Ltd follows WILDHORSE RETAILERS LTD Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Furniture Accumulated depreciation Total assets 2018 2017 0 18,000 76,000 49,000 225,000 170,000 134,000 167,000 (28,000) (42,000) $407,000 $362,000 Liabilities and Shareholders' Equity Bank overdraft Accounts payable Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity $407,000 $ 14,000 $ 67,000 42,000 94,000 105,000 54,000 64,000 178,000 151,000 $362,000

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Additional information: 1. Net income was $32,000 in 2018. 2. Depreciation expense was $15,000 in 2018. 3. In 2018, no new bank loans were received.

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Additional information:

1.		Net income was $32,000 in 2018.
2.		Depreciation expense was $15,000 in 2018.
3.		In 2018, no new bank loans were received.
4.		In 2018, no furniture was purchased, but some furniture was sold for $8,000, which resulted in a gain on this disposal of $4,000.
5.		No common shares were issued during the year but some were reacquired at the cost at which they were originally issued.
		In 2018, dividends were declared and paid. *Prepare a statement of cash flows using the indirect method for 2018. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)*

The comparative statement of financial position for Wildhorse Retailers Ltd. follows: WILDHORSE RETAILERS LTD Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Furniture Accumulated depreciation Total assets 2018 2017 0 18,000 76,000 49,000 225,000 170,000 134,000 167,000 (28,000) (42,000) $407,000 $362,000 Liabilities and Shareholders' Equity Bank overdraft Accounts payable Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity $407,000 $ 14,000 $ 67,000 42,000 94,000 105,000 54,000 64,000 178,000 151,000 $362,000