Question 1 (19 Marks, 33 minutes):

Hilda Inc., a public company, has provided the following information:

	2021	2020
Assets
Cash	$17,000	$12,000
Trading investments	52,000	0
Accounts receivable	50,000	60,000
Inventory	68,000	110,000
Land	200,000	220,000
Building	943,000	466,000
Accumulated Depreciation, Building	130,000	150,000
Equipment	190,000	80,000
Accumulated Depreciation, Equipment	36,000	20,000
Total Assets	$1,354,000	$778,000
Liabilities and Equity
Accounts payable	86,000	68,000
Income tax payable	6,000	4,000
Interest payable	18,000	14,000
Dividends payable	3,000	2,000
Bank loan payable - current portion	52,000	40,000
Bank loan payable - non-current portion	673,000	418,000
Common shares	396,000	172,000
Retained earnings	120,000	60,000
Total liabilities and equity	$1,354,000	$778,000

The following information is also available:

1. Dividends were declared during the year and some were paid in cash.
2. Common shares were repurchased during the year for their book value, $26,000. Additional shares were issued for cash.
3. The trading investments are made up of short-term deposits, debt investments which are maturing in 30 days and highly liquid.
4. The bank loan was increased by $300,000 but a portion was paid back at the start of the year.
5. Land was sold and a gain on sale of $7,000 was reported on the income statement.
6. A building was purchased for $564,000. In addition, a building was sold and a gain on sale of $78,000 was recorded. Total depreciation expense for the year was $55,000.
7. Equipment costing $140,000 was purchased during the year. In addition, a loss on sale of $10,000 was recorded on equipment which had accumulated depreciation of $5,000 to date.
8. Net income was $89,000 for the year.

Required:

Prepare, in good form, a statement of cash flows using the direct method.

Note: you are required to show your calculations. Numbers which are unsubstantiated will not be awarded marks.