Item4

Item 4

Mackey Limited reported the following selected balances:

Account Title		20X4				20X3
Machinery		$	411,700			$	250,300
Accumulated depreciation, machinery*			(155,700	)			(89,600	)
Bonds payable*			(217,500	)			(144,900	)
Common shares*			(565,600	)			(362,400	)
Preferred shares*			(36,300	)			(217,500	)
Retained earnings*			(339,400	)			(259,000	)

*Brackets denote a credit balance.

Other information:

1. There was a stock dividend of $36,300 on common shares and a cash dividend of $50,900.
2. Of the preferred shares, $72,900 were retired for cash, and $109,500 were converted into bonds payable.
3. Some common shares were issued for cash during the period.
4. Machinery with a net book value of $40,900 and an original cost of $71,000 was sold during the year at a loss of $1,600. Other machinery was purchased for cash.
5. Any unexplained change in the accounts should be assumed to be because of logical transactions.

Required: Prepare a partial statement of cash flows using indirect method