Question 3 14 marks

The following selected data for Potato Inc. for 2017 was gathered by its accountants, who are responsible for preparing the financial statements:

Cost of good sold $56,500

Amortization Expense 14,000

Other operating expenses 17,700

Loss on sale of investments 1,500

Gain on sale of capital assets 8,500

Sales revenue 95,600

Interest revenue received 5,200

Dividend revenue received 2,500

Salary expense 27,200

Interest expense paid 5,900

Income tax expense 2,400

The cash balance on Jan. 1, 2017 has a balance of $15,000 and on Dec. 31, 2017, had a balance of $208,500

Other data gathered by the accountants for 2017:

Accounts receivable decreased $13,600

Inventory increased 6,800

Prepaid expenses decreased 2,700

Accounts payable increased 21,400

Salary payable increased 1,500

Accrued liabilities decreased 4,300

Income tax payable increased 800

Acquisition of capital assets 46,000

Issuance of common shares 80,000

Proceeds from sale of investments 35,000

Collection of loan principal 22,600

Payment of dividend 15,000

Proceeds of sale of capital assets 31,700

Proceeds from sale of repurchase of shares 45,000

In good form prepare the statement of cash flow for the year ended December 31,2017 using the direct method.