Exercise 22-16 (a) (indirect method) Information from the statement of financial position and statement of income are given below for Ayayai Road Inc., a company following IFRS, for the year ended December 31. Ayayai Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities Comparative Statement of Financial Position, at December 31 2017 $91,800 91,800 125,900 85,800 287,000 2016 Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation $48,150 37,200 105,650 109,000 211,000 (48,700) (40,000) $633,600 $471,000 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings $53,700 $48,480 19,730 73,000 202,000 127,790 $633,600 $471,000 12,300 134,000 250,000 183,600 Statement of Income, year ended December 31, 2017 Revenues Sales Gain on sale of investment in land Gain on sale of equipment $289,630 5,000 8,930 303,560 Expenses Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense $98,160 57,500 14,780 38,000 2,640 211,080 Net income $92,480 Additional information: 1. Investments in land were sold at a gain during 2017. 2. Equipment costing $56,300 was sold for $16,430, resulting in a gain 3. Common shares were issued in exchange for some equipment during the year. No other shares were issued 4. The remaining purchases of equipment were paid for in cash Prepare a statement of cash flows for the year ended December 31, 2017, 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).) AYAYAI ROAD INC. Statement of Cash Flows Indirect Method Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income/ (Loss) 92480 Adjustments to reconcile net income to net cash provided by operating activities Depreciation Expense 57500 Gain on Sale of Investment in Land 5000 Gain on Disposal of Equipment Increase in Accounts Payable Increase in Inventory Increase in Accounts Payable -8930 54600 20250 S220 Decrease in Accrued Liabilities -7430 33490 Net Cash Provided by Operating Activities 58990 Cash Flows from Investing Activities Gain on Sale of Investment in Land 28200 Proceeds from Sale of Equipment 16430 Purchase of Equipment -84300 Net Cash Used by Investing Activities 39670 Cash Flows from Financing Activities Issuance of Notes Payable 61000 Payment of Cash Dividends 36670 Net Cash Provided by Financing Activities 24330 Net Increase in Cash 43650 Cash, January 1 48150 Cash, December 31 91800 48000 Note X: Significant non-cash investing and financing activities: Equipment with a cost of s was exchanged for common shares. Supplemental disclosures of cash flow information: Cash paid during the year for