Presented below is the comparative balance sheet forIvanhoeInc., a private company reporting under ASPE, at December 31, 2021, and 2020:

IVANHOEINC.

Balance Sheet

December 31Assets20212020Cash$67,000$98,000Accounts receivable101,00075,000

Inventory205,000155,500

Long-term investment101,500

0Property, plant, and equipment

535,000

460,000

Less: Accumulated depreciation(162,500)(140,000

)$847,000

$648,500

Liabilities and Shareholders' EquityAccounts payable$57,500

$47,000

Dividends payable6,0000Income tax payable14,00015,000

Long-term notes payable25,000

0Common shares630,000

525,000

Retained earnings114,500

61,500

$847,000

$648,500

IVANHOEINC.

Income Statement

Year Ended December 31, 2021

Sales$663,000

Cost of goods sold432,000

Gross profit231,000

Operating expenses

$147,500

Loss on sale of equipment3,000

150,500

Profit from operations80,500

Interest expense3,000

Interest revenue(4,500

)(1,500)Profit before income tax82,000

Income tax expense14,000Profit$68,000

Additional information:1.

Cash dividends of $15,000were declared.

2.

A long-term investment was acquired for cash at a cost of $101,500.

3.

Depreciation expense is included in the operating expenses.

4.

The company issued10,500common shares for cash on March 2, 2021. The fair value of the shares was $10per share. The proceeds were used to purchase additional equipment.

5.

Equipment that originally cost $30,000was sold during the year for cash. The equipment had a carrying value of $9,000at the time of sale.

6.

The company issued a note payable for $28,000and repaid $3,000by year end.

7.All purchases of inventory are on credit.8.Accounts Payable is used only to record purchases of inventory.

Prepare a cash flow statement for the year using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

IVANHOEINC.

Cash Flow Statement - Indirect Method

Year Ended December 31, 2021

Month Ended December 31, 2021

December 31, 2021

Cash, December 31

Net Cash Used by Investing Activities

Net Cash Provided by Financing Activities

Cash, January 1

Financing Activities

Investing Activities

Operating Activities

Net Cash Provided by Operating Activities

Net Cash Used by Operating Activities

Net Cash Used by Financing Activities

Net Increase in Cash

Net Decrease in Cash

Net Cash Provided by Investing Activities

Increase in Accounts Receivable

Purchase of Equipment

Payment of Dividends

Depreciation Expense

Sale of Equipment

Payments for Operating Expenses

Collections from Customers

Increase in Inventory

Repayment of Note Payable

Issue of Note Payable

Increase in Accounts Payable

Loss on Sale of Equipment

Issuance of Common Shares

Profit

Payments to Suppliers

Acquisition of Long-Term Investment

Decrease in Income Tax Payable

Payments for Taxes

$Adjustments to reconcile profit to

Net Cash Used by Investing Activities

Net Cash Used by Financing Activities

Cash, December 31

Net Cash Provided by Financing Activities

Net Decrease in Cash

Net Increase in Cash

Net Cash Used by Operating Activities

Financing Activities

Cash, January 1

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Operating Activities

Investing Activities

Issuance of Common Shares

Profit

Loss on Sale of Equipment

Increase in Accounts Payable

Payments to Suppliers

Collections from Customers

Payment of Dividends

Repayment of Note Payable

Issue of Note Payable

Purchase of Equipment

Payments for Taxes

Decrease in Income Tax Payable

Sale of Equipment

Depreciation Expense

Increase in Inventory

Payments for Operating Expenses

Acquisition of Long-Term Investment

Increase in Accounts Receivable

$

Payments to Suppliers

Issuance of Common Shares

Purchase of Equipment

Increase in Inventory

Collections from Customers

Payments for Operating Expenses

Payment of Dividends

Payments for Taxes

Increase in Accounts Payable

Profit

Depreciation Expense

Increase in Accounts Receivable

Repayment of Note Payable

Loss on Sale of Equipment

Decrease in Income Tax Payable

Issue of Note Payable

Sale of Equipment

Acquisition of Long-Term Investment

Issue of Note Payable

Purchase of Equipment

Increase in Inventory

Payment of Dividends

Decrease in Income Tax Payable

Profit

Payments for Taxes

Repayment of Note Payable

Increase in Accounts Payable

Payments for Operating Expenses

Increase in Accounts Receivable

Issuance of Common Shares

Depreciation Expense

Collections from Customers

Loss on Sale of Equipment

Sale of Equipment

Acquisition of Long-Term Investment

Payments to Suppliers

Decrease in Income Tax Payable

Payments for Taxes

Repayment of Note Payable

Issue of Note Payable

Purchase of Equipment

Increase in Accounts Payable

Issuance of Common Shares

Payments to Suppliers

Payment of Dividends

Increase in Inventory

Depreciation Expense

Loss on Sale of Equipment

Sale of Equipment

Profit

Increase in Accounts Receivable

Collections from Customers

Payments for Operating Expenses

Acquisition of Long-Term Investment

Sale of Equipment

Payment of Dividends

Issuance of Common Shares

Purchase of Equipment

Payments to Suppliers

Acquisition of Long-Term Investment

Repayment of Note Payable

Depreciation Expense

Increase in Accounts Payable

Payments for Taxes

Collections from Customers

Decrease in Income Tax Payable

Increase in Accounts Receivable

Issue of Note Payable

Loss on Sale of Equipment

Payments for Operating Expenses

Increase in Inventory

Profit

Increase in Inventory

Issue of Note Payable

Purchase of Equipment

Loss on Sale of Equipment

Repayment of Note Payable

Collections from Customers

Increase in Accounts Payable

Decrease in Income Tax Payable

Payments for Operating Expenses

Issuance of Common Shares

Acquisition of Long-Term Investment

Payments to Suppliers

Depreciation Expense

Payments for Taxes

Payment of Dividends

Sale of Equipment

Increase in Accounts Receivable

Profit