Question 2: Statement of Cash Flows (23 marks) Seven Kingdoms Inc.'s financial statements as at December 31, 2017, appear below: Seven Kingdoms Inc. Comparative Balance Sheet As at December 31, 2017 and 2016 2017 2016 Cash ppt17.pptx $160,000 Investments - (fair value through profit loss) 12,000 Accounts receivable 290,000 Inventory 575,000 Property, plant, and equipment 1,984,000 Less: accumulated depreciation (650,400) Intangibles, net 126,000 Deferred product development costs 564,000 $3,060,600 $100,000 10,000 360,000 498,000 1,396,000 (487,000) 135,000 417,000 $2,429,000 Accounts payable Income taxes payable Bonds payable Ordinary shares Retained earnings $81,000 $84,000 12,000 2,000 659,500 674,000 1,150,000 700,000 1,158,100 969,000 $3,060,600 $2,429,000 Seven Kingdoms Inc. Income Statement For the Year Ended December 31, 2017 2017 Sales $2,511,100 1,256,000 1,255, 100 Cost of goods sold Gross profit Deprecation of property, plant, and equipment Interest expense Other expenses Income before income taxes 334,400 75,000 256,600 589,100 Income taxes 300,000 Net income $289,100 Additional information: > Property, plant, and equipment costing $570,000 was sold for $422,000. 100,000 ordinary shares were issued to acquire $450,000 of property, plant, and equipment. $212,000 of deferred development costs were capitalized during the year. The company nets many items to Other Expenses, for example, gains and losses on fixed asset sales and some amortization. The deferred product development expenditures were all paid in cash. The decrease in the bonds payable account was due to the amortization of the premium. > Seven Kingdoms Inc. has elected to designate its at fair value through profit and loss investments as cash equivalents. Seven Kingdoms Inc. has adopted a policy of classifying cash outflows from interest and dividends as financing activities. Required- Prepare a statement of cash flows for the year ended December 31, 2017 using the indirect method