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