Exercise 13-12 (Indirect Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: PUFFY LTD. Statement of Financial Position December 31 Assets Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets 2015 2014 $55,230 $20,520 78,510 189,570 194,840 68,080 101,100 261,970 199,350 (65,240)(31430) $592,880 $562,890 83,270 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $592,880 $38,070 $46,590 155,710 211,210 197,230 172,290 201,870 132,800 $562,890 Additional information: 1. Profit was $110,630 2. Sales were $973,860 3. Cost of goods sold was $752,200 4. Operating expenses were $43,180, exclusive of depreciation expense. 5. Depreciation expense was $33,810 6. Interest expense was $13,600 7. Income tax expense was $26,240 8. Land was sold at a gain of $5,800 9. No equipment was sold during the year. 10. $55,500 of the bank loan was repaid during the year 11. Common shares were issued for $24,940 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).)