As the accountant for House of the Dragon Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the indirect method and have gathered together the following data from the accounting records:

Required

1.Prepare the operating activities section of the cash flow statement for the year ended December 31, 2023 under ASPE, using the indirect method.

Principalpaymentsonnon-currentdebtCollectionsonaccountsreceivableIncreaseinaccountspayableAcquisitionofequipmentbyissuingnon-currentnotepayableDepreciationexpenseCollectionofloanprincipalProceedsfromsaleofinvestments,notincluding$5,100gainIncreaseinaccountsreceivableCashpaymentstopurchasecapitalassetsDecreaseinaccruedliabilitiesPaymentofcashdividendsIncometaxexpenseandpaymentsProceedsfromsaleofcapitalassets,notincluding:$7,400lossNetincomeCashsalesProceedsfromissuanceofcommonsharesIncreaseininventoryLoantoanothercompanyBondspayableconvertedintocommonsharesPaymentstosuppliersDecreaseinprepaidexpensesCashbalance:December31,2022.Cashbalance:December31,2023.$50,000287,50024,30070,00071,30058,00049,1007,20062,00030,60046,50039,30022,600147,100217,400300,00041,70060,000130,000283,10012,80062,500452,000