Required:

Prepare a statement of cash flows for the year ended December 31, 2017, using the DIRECT method.

The comparative statements of financial position for Gold Inc. appear below: 2017 2016 Assets Cash Accounts receivable Inventory Land Equipment, net Total assets $ 10,000 15,000 13,000 30,000 43,000 $111,000 $ 18,000 31,000 22,000 0 13,000 $ 84,000 Liabilities and Shareholder's Equity Trade payables Long-term notes payable $ 14,000 40,000 $ 31,000 15,000 Common shares Retained earnings 11,000 46,000 11,000 27,000 Total liabilities and shareholder's equity $111,000 $ 84,000 Additional information: 1. Profit for the year ending December 31, 2017 was $28,000. Included in the determination of profit was a gain of $2,000 on the sale of equipment (see note 3 below) and depreciation expense of $8,000. 2. The carrying amount of the equipment at the end of 2017 and 2016 was determined as follows: 2017 2016 Equipment 55,000 27,000 Accumulated depreciation: Equipment _(12,000) (14,000) Net carrying amount $ 43,000 $ 13,000 3. Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for cash proceeds of $12,000 during 2017. 4. Equipment costing $10,000 was purchased during the year in exchange for a note payable instead of cash. All other equipment purchases were for cash. There were no other non-cash transactions during the year