Chahal Mining Inc.'s comparative balance sheet information at December 31, 2017, and 2016, and its income statement for the year ended December 31, 2017, are as follows:

During 2017, the following transactions occurred:

Issued $14,000 of bonds payable at face value. Sold the non-current investment on January 1, 2017, for $16,800, resulting in investment income of $6,720. Sold equipment for $3,920 cash that had originally cost $17,920 and had $11,760 of accumulated depreciation Purchased equipment for $11,200 cash.

Required:

Prepare a statement of cash flows for 2017 using the direct method to report cash inflows and outflows from operating activities

Chahal Mining Inc. Comparative Balance Sheet Information