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