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Gems Co. uses the indirect method to prepare its statement of cash flows. The following comparative statement of financial position for 2021 and 2022 are

Gems Co. uses the indirect method to prepare its statement of cash flows. The following comparative statement of financial position for 2021 and 2022 are presented:

At December 31
2022 2021
Property, Plant and Equipment (PPE) $1 260 000 $1 050 000
Accumulated depreciation (450 000) (375 000)
Patent 153 000 174 000
Prepaid expenses 18 000 27 000
Inventory 150 000 180 000
Accounts receivable 159 000 117 000
Cash 297 000 153 000
$1 587 000 $1 326 000
Accounts payable $ 153 000 $ 168 000
Accrued liabilities 60 000 42 000
Mortgage payable ---- 450 000
Share capital-Preference 645 000 -----
Share capital-Ordinary 600 000 600 000
Retained earnings 129 000 66 000
$1 587 000 $1 326 000

Additional Information:

1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2. The Retained Earnings account has been charged for dividends of $138 000 and credited for the net income for the year.

The statement of profit or loss for 2022 was as follows:

Sales $1 980 000
Cost of sales 1 089 000
Gross profit 891 000
Operating expenses 690 000
Net income $ 201 000

Create the statement of cash flows (indirect method) for Gems Co. for the year ended December 31, 2022.

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