Other information:

• Capital assets that had cost $90,400 were sold for proceeds of $34,200.
• A stock dividend valued at $50,000 was declared and distributed in June 2018.
• Equipment valued at $80,000 was acquired for preferred shares during the year.
• Bonds with a face value of $400,000 were issued for $368,000 cash in January 2018. No bonds were redeemed during the year.
• The temporary investments were considered to be cash equivalents.

required:

Prepare a cash flow statement for this Company for 2018 using the indirect method. Show interest and income taxes paid on the face of the statement.

Statement of Income for the year ended December 31, 2018 $ Revenues and gains: Sales Interest and dividends Gain on sale of investments 1,520,000 61,000 14,000 $ 1,595,000 Expenses and losses: Cost of goods sold Selling expenses Amortization expense Interest expense Loss on sale of equipment Income tax expense 700,000 80,400 39,200 16,600 4,200 226,400 1,066,800 Net income $ 528,200 2017 $ Statement of Financial Position as at December 31, 2018 2018 Assets: Cash 134,400 $ Temporary investments 32,000 Accounts receivable 418,000 Inventory 340,100 Prepaid expenses 24,100 Long-term investments Property, plant and equipment (net) 1,628,400 $ 2,577,000 $ 98,200 8,000 480,000 330,000 20,000 17,800 1,390,000 2,344,000 36,200 24,000 (62,000) 10,100 4,100 (17,800) 238,400 $ 208,600 80,000 Li abilities and Shareholders' Equity: Accounts payable Income taxes payable Dividends payable Bonds payable Deferred income tax liability Preferred shares Common shares Retained earnings 179,800 $ 123,000 32,000 372,000 28,400 180,000 790,000 871,800 2,577,000 $ (28,800) 43,000 32,000 372,000 14,200 80,000 90,000 (369, 400) 14,200 100,000 700,000 1,241,200 2,344,000 $ Statement of Income for the year ended December 31, 2018 $ Revenues and gains: Sales Interest and dividends Gain on sale of investments 1,520,000 61,000 14,000 $ 1,595,000 Expenses and losses: Cost of goods sold Selling expenses Amortization expense Interest expense Loss on sale of equipment Income tax expense 700,000 80,400 39,200 16,600 4,200 226,400 1,066,800 Net income $ 528,200 2017 $ Statement of Financial Position as at December 31, 2018 2018 Assets: Cash 134,400 $ Temporary investments 32,000 Accounts receivable 418,000 Inventory 340,100 Prepaid expenses 24,100 Long-term investments Property, plant and equipment (net) 1,628,400 $ 2,577,000 $ 98,200 8,000 480,000 330,000 20,000 17,800 1,390,000 2,344,000 36,200 24,000 (62,000) 10,100 4,100 (17,800) 238,400 $ 208,600 80,000 Li abilities and Shareholders' Equity: Accounts payable Income taxes payable Dividends payable Bonds payable Deferred income tax liability Preferred shares Common shares Retained earnings 179,800 $ 123,000 32,000 372,000 28,400 180,000 790,000 871,800 2,577,000 $ (28,800) 43,000 32,000 372,000 14,200 80,000 90,000 (369, 400) 14,200 100,000 700,000 1,241,200 2,344,000 $