Prepare Cash flow using indirect method

OPERATING ACTIVITIES Non-cash Expenses and Revenues Changes in the working capital . TOTAL INVESTING ACTIVITIES TOTAL FINANCING ACTIVITIES + TOTAL + 2018 2017 ASSETS Cash A/R Inventory Prepaid expenses 12,500 32,500 72,700 4,100 121,800 15,200 43,500 68,400 2,600 129,700 Land Equipment Accum Depreciation Patent Total Assets 183,000 189,800 (45,000) 11,000 460,600 135,000 145,200 (67,200) 12,500 355,200 LIABILITIES A/P Income tax payable 110,100 32,000 142,100 130,500 24,200 154,700 Note Payable 20,000 162,100 0 154,700 SHAREHOLDERS' EQUITY Share capital Retained earnings 240,000 58,500 298,500 170,000 30,500 200,500 Total liabilities and equity 460,600 355,200 Sales revenues COGS 2018 610,000 366,000 244,000 Operating Expenses Salaries Expense Interest Expense Depreciation Expense - Equipment Loss on disposal of equipment Impairment loss on Patent Operating Profit 83,300 62,000 14,500 15,200 12,500 1,500 189,000 55,000 Income Tax Expense Net Profit 16,500 38,500 Additional information related to business activities during 2018: The original cost of the equipment sold was $80,400. New equipment was purchased during the year and 5,000 common shares at $14 per share were issued as a partial payment Koopa purchased same land and borrowed $20,000 from the bank as a partial payment Koopa declared and paid a dividend on December 15. After some changes in the market, the value of the patent decreased. The company recorded a 1,500 loss to reflect the change. +