Problem 17-8A Ivanhoe Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2017 and 2016. IVANHOE LTD Balance Sheet May 31 Assets 2017 2016 Cash $33,175 $42,750 Accounts receivable 83,050 74,750 Inventory 168,000 155,750 Prepaid expenses 4,300 5,800 Land 115,750 71,500 Equipment 303,000 183,000 Accumulated depreciation (61,200) (35,750) Total assets $646,075 $497,800 Liabilities and Shareholders' Equity Accounts payable $40,450 $35,750 Dividends payable 5,800 4,300 Income taxes payable 1,500 5,300 Mortgage payable 115,000 75,750 Common shares 210,500 161,750 Retained earnings 272,825 214,950 Total liabilities and shareholders equity $646,075 $497,800 Additional Information: 1. Profit for 2017 was $116,625. 2. Common shares were issued for $48,750. Land with a cost of $48,750 was sold at a loss of $18,300. 4. Purchased land with a cost of $93,000 with a $53,750 down payment and financed the remainder with a mortgage note payable. 5. No equipment was sold during 2017, 6. Net sales for the year were $671,600. 7. Cost of goods sold for the year was $397,800. 8. Operating expenses, including depreciation expense, were $95,700. Interest expense was $4,300. 10. Income tax expense was $38,875. 11. Accounts payable is used for merchandise purchases. 9. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15