IFRS 23-7

Sandhill Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.

December 31

2017

2016

Buildings

$ 0

$29,250

Equipment

47,500

22,500

Patents

5,200

6,500

Investments

0

3,250

Inventory

10,750

8,500

Accounts receivable

12,500

9,500

Cash

33,425

13,500

$ 109,375

$93,000

Share capitalordinary

$ 43,500

$33,500

Retained earnings

21,000

6,500

Allowance for doubtful accounts

3,250

5,000

Accumulated depreciation on equipment

2,250

5,000

Accumulated depreciation on buildings

0

6,500

Accounts payable

5,625

3,250

Dividends payable

0

5,250

Long-term notes payable

30,500

23,750

Notes payable, short-term (non-trade)

3,250

4,250

$ 109,375

$93,000

Additional data related to 2017 are as follows.

1. Equipment that had cost $11,500 and was 40% depreciated at time of disposal was sold for $2,750.

2. $10,000 of the long-term notes payable was paid by issuing ordinary shares.

3. Cash dividends paid were $5,250.

4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $31,500.

5. Equity investments (non-trading) were sold at $1,950 above their cost.

6. Cash was paid for the acquisition of equipment.

7. A long-term note for $16,750 was issued for the acquisition of equipment.

8. Interest of $2,250 and income taxes of $7,500 were paid in cash.

Prepare a statement of cash flows using the indirect method. (If an amount reduces the account balance then enter with negative sign.)

SANDHILL CORPORATION

Statement of Cash Flows

$

Adjustments to reconcile net income to

$

$

Supplemental disclosures of cash flow information:

$

$

$

$