PART A [15 Marks] The following information was obtained from the accounting records and financial statements of Sun & Fun Corporation, a wholesaler that specializes in selling printers for computers. SUN & FUN CORPORATION Comparative Balance Sheets November 30 2018 2017 Assets Cash Accounts receivable Inventory Investment Machinery and equipment Accumulated depreciation Goodwill $180,000 560,000 410,000 260,000 1,120,000 (600,000) 120,000 $ 2,050,000 $150,000 490,000 516,000 200,000 1,200,000 (520,000) 170,000 $ 2.206.000 Liabilities and shareholders' equity Accounts payable-Trade Long-term debt Ordinary shares Retained earnings $ 524,000 370,000 800,000 356,000 $ 2,050,000 $ 600,000 500,000 720,000 386,000 $ 2,206.000 SUN & FUN CORPORATION Income Statement year ended November 30, 2018 Sales Cost of goods sold Gross profit Salaries and wages expense Interest expense Other expenses Investment revenue: share of earnings of associate Gain on disposal of machinery and equipment Loss on impairment of goodwill Net income $ 6,400,000 4,800,000 1,600,000 (960,000) (110,000) (330,000) 60,000 30,000 (50.000) $ 240,000 Additional information i. Sun & Fun sold display machinery and equipment that had an original cost of $80,000 and net book value of $60,000. There were no purchases of machinery and equipment. ii. Depreciation expense is included as part of SUN's other expenses." iii. Sun & Fun declared and paid cash dividends on November 1, 2018. iv. Sun & Fun's investment in associate represents an investment in 30% of the shares of Moon made several years ago. Moon has never paid dividends. Sun & Fun has assessed goodwill for impairment since it was recorded in 2016. During 2018, Sun & Fun determined that the fair value of goodwill had decreased by $50,000. V. Required a) Prepare the cash flow statement, using the indirect method, for SUN for the year ended November 30, 2018. (15 Marks)