Problem 1 The following are the condensed financial statements for Ajax Ltd, for its most recent year-end. Ajax Ltd. Statement of Financial Position As at October 31, 2021 Assets Cash Accounts receivable Equipment less: accumulated depreciation, equipment Land 2021 $49,000 158,000 1,393,000 (563,000) 180,000 $ 1.217.000 2020 $32,000 135,000 1,248,000 (550,000) -0- $ 865.000 Liabilities and Shareholders' Equity Accounts payable Dividends payable Bank loan payable Common shares Retained earnings $ 136,000 15,000 85,000 330,000 651,000 $ 1.217.000 $190,000 -0- 120,000 150,000 405,000 $ 865,000 1 Ajax Ltd. Statement of Income For the Year Ended October 31, 2021 $1,450,000 24,000 Sales revenue Gain on sale of equipment Expenses Wage expense Utilities expense Depreciation expense Rent expense Interest expense Income tax expense Net income 950,000 26,000 107,000 48,000 12,000 40,000 $291,000 Additional Information 1. In May, the company acquired land with a value of $180,000 by issuing common shares with the sam value. 2. A repayment of the bank loan was made in the year. 3. Dividends were declared and paid in the year. 4. During the year, equipment that originally cost $135,000, was sold for $65,000. Required (Il marks - 20 minutes) a. Prepare a statement of cash flows using the indirect method. b. Determine the amount of "cash paid for interest". (space is on the next page)