*Question 6 The comparative unclassified statement of financial position for Ivanhoe Ltd. follows: IVANHOE LTD Statement of Financial Position December 31 Assets 2018 2017 Cash $52,000 $28,000 Accounts receivable 89,000 66,000 Inventory 201,000 181,000 Long-term investments 79,000 100,000 260,000 154,000 Equipment Accumulated depreciation (61,000) (39,000) $600,000 $510,000 Total assets Liabilities and Shareholders' Equity Accounts payable $34,000 54,000 Bank loan payable 152,000 153,000 Common shares 207,000 170,000 Retained earnings 207,000 133,000 Total liabilities and shareholders' equity $600,000 $510,000 Additional information: Net income was $147,100 1. 2. Sales were $996,000. Cost of goods sold was $754,000 3. 4. Operating expenses were $41,000, exclusive of depreciation expense. Depreciation expense was $22,000 5. Interest expense was $13,000. 6. Income tax expense was $24,000 7. Long-term investments were sold at a gain of $5,100. 8. No equipment was sold during the year $1,000 of the bank loan was repaid during the year 9. 10. Common shares were issued for $37,000 11 Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) IVANHOE LTD. Statement of Cash Flows-Direct Method Cash payments $