Below are the income statement and comparative balance sheet of Doone Corporation for year ending Dec 31, 2019 is given below. All amounts in Canadian dollars.

Required: Prepare the cashflow statement, clearly including operating, financing and investing activities up to the net change in cash using the Indirect method as of Dec 31, 2019.

Doone Corporation

Income Statement

For the Year ended Dec 31, 2019

Sales Revenue 780,000

Less: Cost of Goods Sold 360,000

Gross Profit 420,000

Less: Selling, General and Administrative Expenses 85,000

Operating profit 335,000

Less: Depreciation expense 55,000

Earnings before interest and taxes 280,000

Less: Interest expense 35,000

Earnings before taxes 245,000

Less: tax expense (40%) 98,000

Net Income 147,000

Doone Corporation

Comparative Balance Sheet

Dec 31, 2018 and 2019

2018 2019

Cash 12,000 16,000

Marketable securities 23,000 24,000

Accounts receivables 60,000 75,000

Inventory 65,000 48,000

Investments 67,000 52,000

Total current assets 227,000 215,000

Property, Plant & Equipment 560,000 680,000

Less: Accumulated Depreciation 45,000 60,000

Net Prop., Plant & Equipment 515,000 620,000

Total Assets 742,000 835,000

Accounts payable 38,000 45,000

Notes payable 15,000 8,000

Accrued expenses 11,000 8,000

Salaries payable 5,000 1,000

Total current liability 69,000 62,000

Bonds payable 150,000 195,000

Total liabilities 219,000 257,000

Share capital 450,000 500,000

Retained Earnings 73,000 78,000

Total Shareholders equity 523,000 578,000

Total Liabilities and 742,000 835,000

Shareholders equity