Shown below are the comparative statements of financial position and statement of income for Oriole Corporation. Oriole Corporation Statement of Financial Position As at May 31 2025 2024 Current assets Cash $38,700 $35,200 Accounts receivable 82,340 61,130 Inventory 207,510 218,900 Prepaid rent 9,740 7,700 Total current assets 338,290 322,930 Property, plant, and equipment 712,250 551,650 Less: Accumulated depreciation 165,000 134,200 Net property, plant, and equipment 547,250 417,450 Total assets $885,540 $740,380 Current liabilities. Accounts payable $135,300 $126,500 Salaries payable 67,100 79,200 Interest payable 27,110 24,830 Total current liabilities 229,510 230,530 Mortgage payable 82,500 110,000 4 Total liabilities 312,010 340,530 Shareholders' equity Common shares 425,425 308,000 Retained earnings 148,105 91,850 Total shareholders' equity 573,530 399,850 Total liabilities and shareholders' equity $885,540 $740,380 Oriole Corporation Statement of Income For the Year Ended May 31, 2025 Sales $1,650,000 Cost of goods sold 902,000 Gross margin 748,000 Expenses Salaries expense 226,600 Interest expense 49,500 Other operating expenses 35,200 Depreciation expense 30,800 Total operating expenses 342,100 Income from Operations 405,900 Income tax expense 68,200 Net Income $337,700 The following is additional information about transactions during the year ended May 31, 2025, for Oriole Corporation. 1. Equipment costing $160,600 was purchased by paying cash. 2. The "other operating expenses" relate to prepaid rent. 3. In order to supplement its cash, Oriole issued 27,500 additional common shares. 4. Cash dividends of $281,445 were declared and paid at the end of the fiscal year. Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sign eg -15,000 or in parenthesis e.g. (15,000).) Adjustments to reconcile net income to < ORIOLE CORPORATION Statement of Cash Flows