Problem 22 13 Ivanhoe Corporation, which uses IFRS, has contracted with you to prepare a statement of cash flows The controller has provided the following information December 31 2017 2016 Cash $40,810 $13,000 Accounts receivable 11,250 9,700 Inventory 10,450 9,060 FV NI Investments 0 2,450 Land 5,000 5,000 Buildings 0 28,500 Equipment 35,500 13,500 Patent 14,000 14,000 $117,010 $95,210 Allowance for doubtful accounts $1,400 $1,500 Accumulated depreciationequipment 2,100 3,750 Accumulated depreciationbuildings 0 5,700 Accumulated amortizationpatent 9,000 7,750 Accounts payable 4,400 3,750 Dividends payable 0 6,000 Notes payable, short term (non trade) 3,400 4,000 Long term notes payable 32,010 24,760 Share capital 43,000 33,000 Retained earnings 21,700 5,000 $117,010 $95,210 Additional information related to 2017 is as follows 1 Equipment that cost $10,700 and was 50 depreciated at the time of disposal was sold for $2,600 2 Common shares were issued to pay $10,000 of the long term note payable 3 Cash dividends paid were $5,150 Ivanhoe has adopted the policy of classifying dividends paid as operating activities 4 On January 1, 2017, a flood destroyed the building Insurance proceeds on the building were $23,000 5 FV NI investments in shares were sold at $3,750 above their cost The fair value of these investments at December 31, 2016 equalled their original cost 6 Cash of $16,300 was paid to acquire equipment 7 A long term note for $16,400 was issued in exchange for equipment 8 Interest of $2,200 and income tax of $5,600 were paid in cash Ivanhoe has adopted the policy of classifying interest paid as financing activities Requirements 1 Use the indirect method to analyze the above information and prepare a statement of cash flows for Ivanhoe including any note disclosure on non cash financing and investing transactions required under IFRS 2 Prepare a reconciliation of the change in property, plant, and equipments carrying amount to the amounts appearing on the statement of cash flows and corresponding notes

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Problem 22-13 Ivanhoe Corporation, which uses IFRS, has contracted with you to prepare a statement of cash flows. The controller has provided the following information:

Problem 22-13

Ivanhoe Corporation, which uses IFRS, has contracted with you to prepare a statement of cash flows. The controller has provided the following information:

	December 31
	2017	2016
Cash	$40,810	$13,000
Accounts receivable	11,250	9,700
Inventory	10,450	9,060
FV-NI Investments	0	2,450
Land	5,000	5,000
Buildings	0	28,500
Equipment	35,500	13,500
Patent	14,000	14,000
	$117,010	$95,210

Allowance for doubtful accounts	$1,400	$1,500
Accumulated depreciationequipment	2,100	3,750
Accumulated depreciationbuildings	0	5,700
Accumulated amortizationpatent	9,000	7,750
Accounts payable	4,400	3,750
Dividends payable	0	6,000
Notes payable, short-term (non-trade)	3,400	4,000
Long-term notes payable	32,010	24,760
Share capital	43,000	33,000
Retained earnings	21,700	5,000
	$117,010	$95,210

Additional information related to 2017 is as follows:

1.		Equipment that cost $10,700 and was 50% depreciated at the time of disposal was sold for $2,600.
2.		Common shares were issued to pay $10,000 of the long-term note payable.
3.		Cash dividends paid were $5,150. Ivanhoe has adopted the policy of classifying dividends paid as operating activities.
4.		On January 1, 2017, a flood destroyed the building. Insurance proceeds on the building were $23,000.
5.		FV-NI investments in shares were sold at $3,750 above their cost. The fair value of these investments at December 31, 2016 equalled their original cost.
6.		Cash of $16,300 was paid to acquire equipment.
7.		A long-term note for $16,400 was issued in exchange for equipment.
8.		Interest of $2,200 and income tax of $5,600 were paid in cash. Ivanhoe has adopted the policy of classifying interest paid as financing activities.

Requirements

1.Use the indirect method to analyze the above information and prepare a statement of cash flows for Ivanhoe including any note disclosure on non-cash financing and investing transactions required under IFRS.

2. Prepare a reconciliation of the change in property, plant, and equipments carrying amount to the amounts appearing on the statement of cash flows and corresponding notes.