Current Attempt in Progress The comparative, unclassified statement of financial position for Cullumber Ltd. shows the following balances at December 31: Cullumber Ltd. Statement of Financial Position December 31 Assets 2018 Cash $3,000 Term deposits (maturing in 60 days) 0 Accounts receivable 83,000 Inventory 106,000 Land 180,000 Buildings 929,000 Accumulated depreciation-buildings (145,000) Equipment 97,000 Accumulated depreciation equipment (48,000) Total assets $1,205,000 Liabilities and Shareholders' Equity Accounts payable $ 26,000 Income tax payable 4,000 Interest payable 22,000 Bank loan payable-current portion 53,000 Bank loan payable-non-current portion 901,000 Common shares 157,000 Retained earnings 42,000 Total liabilities and shareholders' equity $1,205,000 2017 $ 34,000 41,000 45,000 75,000 229,000 529,000 (191,000) 68,000 (25,000) $805,000 $ 74,000 7,000 16,000 42,000 420,000 182,000 64,000 $805,000 Additional information regarding 2018: 1. 2. 3. 4. Net income was $13,000. A loss of $22,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $16,000 was recorded when old building was sold for was sold for $44,000 cash. A new building was purchased for $520,000 and depreciation expense on buildings for the year was $46,000. Equipment costing $75,000 was purchased while a loss of $14,000 was recorded on equipment that originally cost $46,000 and was sold for $22,000. The company received $517,000 from new bank loans during the year. Dividends were declared and paid during the year. No common shares were issued during the year but some were bought back and retired at the amount they were originally issued at. 5. 6. 7. Prepare the statement of cash flows using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) CULLUMBER LTD. Statement of Cash Flows-Indirect Metho December 31, 2018 Cash flows from operating activities Net income Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 4 $ Gain on disposal of building 4 Increase in accounts receivable 4 Loss on disposal of land Loss on disposal of equipment Decrease in accounts receivable Decrease in accounts payable Increase in inventory Net cash used by operating activities 4 4 $ 4 4 4 $