Eagles Inc. had the following statement of financial position at the end of operations for 2017:

Cash 16,000 Accounts payable 24,000

Accounts receivable 16,960 Bonds payable 32,800

Investment Portfolio 25,600 Common shares 80,000

Equipment (net) 64,800 Retained earnings 18,560

Land 32,000

155360 155360

During 2018, the following occurred:

1. Eagles sold its investment portfolio at a loss of $14,800.

2. A parcel of land was purchased for $17,600.

3. Common shares were bought back at $10,000.

4. Dividends totalling $9,600 were declared and paid to shareholders.

5. Net income for 2018 was $17,200.

6. Depreciation for 2018 was 9,600.

7. At December 31, 2018, Cash was $22,560; Accounts Receivable was $33,600; and Accounts Payable was $32,000.

1. Prepare the statement of financial position as it would appear at December 31, 2018.

Cash	22,560		Accounts Payable	32,000
Accounts receivable	33,600		Bonds Payable
Investment portfolio			Common Shares
Equipment (net)			Retained Earnings
Land

2. Prepare a statement of cash flows for the year ended December 31, 2018 using the indirect

method. Assume dividends paid are treated as financing activities.