Please show Calculations

Exercise 13-7 The comparative unclassified statement of financial position for Ivanhoe Ltd. follows: IVANHOE LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $52,000 $28,000 Accounts receivable 89,000 66,000 Inventory 181,000 201,000 Long-term investments 79,000 100,000 Equipment 260,000 154,000 Accumulated depreciation (61,000) (39,000) Total assets $600,000 $510,000 Liabilities and Shareholders' Equity Accounts payable $34,000 $ 54,000 Bank loan payable 152,000 153,000 Common shares 207,000 170,000 Retained earnings 207,000 133,000 Total liabilities and shareholders' equity $600,000 $510,000 Additional information: 1. 2. 3. 4. 5. 6. 7. Net income was $147,100. Sales were $996,000. Cost of goods sold was $754,000. Operating expenses were $41,000, exclusive of depreciation expense. Depreciation expense was $22,000. Interest expense was $13,000. Income tax expense was $24,000. Long-term investments were sold at a gain of $5,100. No equipment was sold during the year. $1,000 of the bank loan was repaid during the year. Common shares were issued for $37,000. 8. 9. 10. 11. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) IVANHOE LTD. Statement of Cash Flows-Indirect Method IVANHOE LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to $ $ > ( ( ||