Financial Statements of Totten Limited:

During the year, the company purchased a capital asset valued at $30,000; payment was made by issuing common shares. Additional capital assets were acquired for cash. Unexplained changes in accounts relate to logical transactions. 1.Prepare the SCF using the indirect method. Include required note disclosure of non-cash transactions. Omit the separate disclosure of cash flow for interest, investment income, and income tax.

2. Briefly interpret the companys cash transactions for the year, based on the SCF.