Information from the statement of financial position and statement of income are given below for Blue Road Inc., a company following IFRS, for the year ended December 31. Blue 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 2016 Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation $71,300 $47,850 37,500 127,800 107,650 87,300110,000 291,000 213,000 (49,000) (40,000) $620,000 $476,000 91,600 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings $53,700 $48,780 19,430 75,000 230,000 203,000 185,800 129,790 $620,000 $476,000 12,500 138,000 Statement of Income, year ended December 31, 2017 Revenues Sales Gain on sale of investment in land Gain on sale of equipment $289,930 5,000 8,890 303,820 $96,660 58,700 14,740 38,100 Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense 2,840 211,040 $92,780 Net income Additional information: 1. Investments in land were sold at a gain during 2017 2. Equipment costing $56,100 was sold for $15,290, 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).) BLUE ROAD INC Statement of Cash Flows Indirect Method Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income (Loss) 92780 Adjustments to reconcile net income to net cash provided by operating activities Depreciation Expense 58700 Loss on Sale of Investment in Land 5000 Gain on Disposal of Equipment 8890 Increase in Accounts Receivable 54100 Increase in Inventory Increase in Accounts Payable Decrease in Accrued Liabilities 20150 4920 -6930 31450 Net Cash Provided by Operating Activities 61330 Cash Flows from Financing Activities Issuance of Notes Payable 63000 Payment of Cash Dividends -36770 Purchase of Equipment 27700 Net Cash Provided by Financing Activities 53930 Cash Flows from Investing Activities Proceeds from Sale of Land Investments 27700 Proceeds from Sale of Equipment 15290 Net Cash Provided by Investing Activities 42990 Net Increase in Cash 158250 Cach neremher 31 4785 Net Increase in Cash 158250 Cash, December 31 47850 Cash, January 1 206100 27700 Note X: Significant non-cash investing and financing activities: Equipment with a cost of Supplemental disclosures of cash flow information: Cash paid during the year for: was exchanged for common shares 27700 Purchase of Equipment Depreciation Expense 58700