Coyote Ltd, a private company reporting under ASPE, reported the following for the years ended May 31, 2017, and 2016

Coyote Ltd.

Balance sheet May 31

Assets	2017	2016
Cash	$12,600	$43,000
Accounts recievable	$85,000	$76,000
Inventory	$172,000	$160,000
Prepaid expenses	$5,000	$7,500
Land	$125,000	$75,000
Equipment	$325,000	$190,000
Accumulated depreciation	($68250)	($40,000
Total assets	$656,350	$511,500
Liability and Shareholder's equity
Accounts payable	$43,000	$38,000
Dividends payable	$7,500	$5,000
Income taxes payable	$2,500	$6,000
Mortgage payable	$125,000	$80,000
Common shares	$217,000	$167,000
Retained earnings	$261,350	$215,500
Total liability and shareholder's equity.	$656,350	$511,500

Additional information

1. Profit for 2017 was $108,000

2. common shares were issued for $50,000

3. Land with a cost of $50,000 was sold at a loss of $20,000

4. Purchased land with a cost of $100,000 with a $55,000 down payment and financed the remainder with a mortgage note payable.

5. No equipment was sold during 2017

Instruction:

1. Prepare a cash flow statement for the year using the indirect method.

2. Is it unfavorable for a company to have a net cash outflow from financing activities?

3. Using horizontal analysis, calculate the percentage change between 2016 and 2017.

4. Using vertical analysis, calculate the percentage of the base amount for each year.

5. Based on your calculation in part (3) and (4), identify any significant changes from 2016 to 2017.