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.