Additional information:

Prepaid expenses and property tax payable relate to operating expenses.

New equipment costing $$85,000$ ?was purchased for $$28,400$ ?cash and a $$56,600$

long$-$term bank loan payable.

Old equipment having an original cost of $$60,900$ ?was sold for $$1,500.$

 ?Accounts payable relate to inventory suppliers.

 ?Some of the bank loan was repaid during the year.

A dividend was paid during the year.

?Operating expenses include $$46,500$ ?of depreciation expense and a $$7,500$ ?loss

on disposal of equipment.

?Common shares were issued for $$43,400$ ?cash during the year and some common

shares were bought back and retired at the cost they were originally issued at$.$

Instructions

A$.$ ?Prepare the statement of cash flows, using the indirect method in good form.

The statement of income and unclassified statement of financial position for Miles Ltd. is as follows: Miles Ltd. Statement of Financial Position October 31 2023 2022 Assets Cash $97,800 $48,400 Trading investments 128,000 114,000 Accounts receivable 97,350 43,000 Inventory 99,850 92,850 Prepaid expenses 19,500 26,000 Equipment 270,000 242,500 Accumulated depreciation (50,000) (52,000) Total assets $662,500 $514,750 Liabilities and Shareholders' Equity Accounts payable $93,000 $77,300 Property tax payable 10,500 6,200 Refund lability 1,000 800 Bank loan payable 110,000 150,000 Common shares 200,000 175,000 Retained earnings 248,000 105,450 Total liabilities and shareholders' equity $662,500 $514,750 Miles Ltd. Statement of Income Year Ended October 31, 2023 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investment $14,000 Interest expense Income before income tax Income tax expense Net income $496,180 185,460 310,720 116,410 194,310 (4,730) 9,270 203,580 45,000 $158,580