Please answer a) at the bottom using the information from the images attached.

CULLUMBER, INC. Statement of Financial Position December 31 Assets 2018 Cash $99,600 Held for trading investments 125,000 Accounts receivable 70,500 Inventory 122,000 Prepaid expenses 19,000 Property, plant, and equipment 321,000 Accumulated depreciation (45,000) Total assets $712,100 Liabilities and Shareholders' Equity Accounts payable $90,000 Accrued liabilities 11,600 Bank loan payable 147,500 Common shares 220,000 Retained earnings 243,000 Total liabilities and shareholders' equity $712,100 2017 $47,400 113,500 42,300 94,450 27,800 298,000 (52,700) $570,750 $74,700 7,100 214,950 150,000 124,000 $570,750 CULLUMBER, 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 $11,500 Interest expense (4,750) Income before income tax Income tax expense Net income $543,150 188,700 354,450 116,470 237,980 6,750 244,730 44.000 $200,730 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $11,500 was recorded. 3. New equipment costing $84,000 was purchased for $22,900 cash and a $61,100 long-term bank loan payable. 4. Old equipment having an original cost of $61,000 was sold for $2,000. 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $46,400 of depreciation expense and a $4,900 loss on disposal of equipment. (a) 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).) CULLUMBER, INC. Statement of Cash Flows-Direct Method Year Ended December 31, 2018 - Cash flows from operating activities Cash receipts from customers $ Cash Payments To suppliers For operating expenses For interest For income taxes Net cash provided by operating activities - Net cash provided by operating activities Cash flows from investing activities Purchase of equipment Proceeds from disposal of equipment Net cash used by investing activities A Cash flows from financing activities Payment of cash dividends Repayment of bank loan payable Sale of common shares Net cash used by financing activities Net increase in cash Cash, January 1 Cash, December 31 by paying Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ $22,900 cash and issuing a $61,100 bank loan payable