prepare the operating activities section of statement of cash flows for Harley Holdings Ltd. for the year ended January 31, 2020, using direct method

HARLEY HOLDINGS LTD. Statement of Financial Position As at January 31 2020 2019 Assets Current assets: Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation, equipment Land $43,000 74,650 82,220 199,870 150,500 (37,410) 103,200 $416,160 $31,390 47,300 87,460 166,150 124,700 (33,540 ) 146,200 $403,510 Liabilities and shareholders' equity Current liabilities: Accounts payable Dividends payable Total current liabilities Bank loan payable Common shares Retained earnings $38,960 11,180 50,140 86,000 129,000 151,020 $416,160 $53,490 4,300 57,790 120,400 111,800 113,520 $403,510 $374,100 253,700 120,400 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2020 Sales revenue Cost of goods sold Gross profit Expenses Wages expense $13,070 Depreciation expense 22,790 Rent expense 12,990 Income tax expense 12,640 Operation income Gain on sale of equipment Net income 61,490 58,910 860 $59,770 Additional information: 1. Equipment costing $30,100 was sold for $12,040. Land was sold at cost and none was purchased during the year. 2. HARLEY HOLDINGS LTD. Statement of Cash Flows, Direct Method For the Year Ended January 31, 2020 $ $