Problem 13-6A (Indirect Method) Financial statements for E-Perform, Inc. follow: E-PERFORM, INC Statement of Financial Position December 31 Assets Cash Trading investments Accounts receivable Inventories Prepaid expenses Property, plant, and equipment Accumulated depreciation 2012 2011 $97,300 128,110 74,610 121,000 18,150 268,780 49,870 658,080 $47,560 115,540 44,02O 92,210 26,680 242,960 (52,020 516.950 Total assets Liabilities and Shareholders' Equity Accounts payable Accrued liabilities Bank loan payable Common shares Retained earnings $78,830 6,510 152,100 173,740 247,580 105,770 516,950 $93,860 12,170 103,390 201,080 Total liabilities and shareholders' equity E-PERFORM, INC. Income Statement Year Ended December 31, 2012 Sales Cost of goods sold Gross profit Operating expenses Profit from operations Other revenues and expenses $491,120 184,000 307,120 115,820 191,300 Unrealized gain on trading investments $12,570 8,380 199,680 45,730 (4.19o) Interest expense Profit before income tax Income tax expense Profit 1. 2. 3. Prepaid expenses and accrued liabilities relate to operating expenses. An unrealized gain on trading investments of $12,570 was recorded New equipment costing $84,070 was purchased for $24,500 cash and a $59,570 long-term bank loan payable. Old equipment having an orginal cost of $58,250 was sold for $1,340 5. Accounts payable relate to merchandise creditors. 6. Same of the bank lcan was repaid during the year 7. A dividend was paid during the year 8. Operating expenses include $45,390 of depreciation expense and a $9,370 loss on disposal of equipment. Prepare the watement of cash fiows, using the indirect methed. (Show amounts that decrease cash flow with elther a -sign e.g. -15,000 or in parenthesis e.g (1S, 000). Adjustments to reconcile profit to