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Application Problem 5-6A al (Indirect Method) The following information is for Harley Holdings Ltd. for the year ended January 31, 2020. HARLEY HOLDINGS LTD. Statement of Financial Position As at January 31 2020 2019 Assets Current assets: Cash $53,000 $38,690 Accounts receivable 92,010 58,300 Inventory 101,340 107,800 Total current assets 246,350 204,790 Equipment 185,500 153,700 Accumulated depreciation, equipment (46,110) (41,340) Land 127,200 180,200 $512,940 $497,350 Liabilities and shareholders' equity Current liabilities: Accounts payable $48,020 $65,930 Dividends payable 13,780 5,300 Total current liabilities 61,800 71,230 Bank loan payable 106,000 148,400 Common shares 159,000 137,800 Retained earnings 186,140 139,920 $512,940 $497,350 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2020 Sales revenue $461,100 Cost of goods sold 312,700 Gross profit 148,400 Expenses Wages expense $16,110 Depreciation expense 28,090 Rent expense 16,010 Income tax expense 15,580 75,790 Operation income 72,610 Gain on sale of equipment 1,060 Net income $73,670 Additional information: 1. 2. Equipment costing $37,100 was sold for $14,840. Land was sold at cost and none was purchased during the year. (al) Using the above information, prepare the statement of cash flows for Harley Holdings Ltd. for the year ended January 31, 2020, using indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) HARLEY HOLDINGS LTD. Statement of Cash Flows, Indirect Method For the Year Ended January 31, 2020 Supplementary disclosures Cash paid for income tax Opening Cash Ending Cash Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used for Financing Activities Net Cash Used for Investing Activities Net Cash Used for Operating Activities Net Change in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Dividend Paid Gain on Sale of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Shares Loss on Sale of Equipment Net Income Proceeds from the Sale of Equipment Proceeds from the sale of Land Purchase of Equipment Repayment of Bank Loan