IVANHOE, INC. Statement of Financial Position December 31 2017 Assets Cash Held for trading investments Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Accrued liabilities Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity 2018 $98200$47200 126000 112000 72500 123800 18800 317000 286500 (50000) (53500) 40600 93000 26600 $706300 $552400 $96000$71800 7500 113500 178100 240000 175000 245000 120000 $552400 11800 $706300 IVANHOE, INC. Income Statement Year Ended December 31,2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $526650 189000 337650 116400 221250 $14000 Interest expense Income before income tax Income tax expense Net income 4740 9260 230510 49000 $181510 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. Prepaid expenses and accrued liabilities relate to operating expenses. An unrealized gain on held for trading investments of $14000 was recorded. New equipment costing $89000 was purchased for $21700 cash and a $67300 long-term bank loan payable. Old equipment having an original cost of $58500 was sold for $1500. Accounts payable relate to merchandise creditors. Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46700 of depreciation expense and a $6800 loss on disposal of equipment. Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000)) IVANHOE, INC. Statement of Cash Flows-Direct Method Year Ended December 31, 2018 Cash flows from operating activities Cash receipts from customers 494,750 Cash Payments To suppliers 244,000 55,100 -4,740 49,000 For operating expenses For interest For income taxes 343,360 Cash flows from investing activities 151,390 Cash flows from financing activities Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by paying $21700 cash and issuing a $67300 bank loan payable