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The comparative, unclassified statement of financial position for Carla Vista Ltd. shows the following balances at December 31: Carla Vista Ltd. Statement of Financial Position

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The comparative, unclassified statement of financial position for Carla Vista Ltd. shows the following balances at December 31: Carla Vista Ltd. Statement of Financial Position December 31 Assets 2021 2020 Cash $ 24,000 $0 Accounts receivable 20,000 34.000 Inventory 34.000 59.000 Land 100,000 111.000 Buildings 526,000 263.000 Accumulated depreciation-buildings 79.000 (105,000 Equipment 86,000 43,000 Accumulated depreciation-equipment (16,000 (9.000 $695.000 $396,000 Total assets Liabilities and Shareholders' Equity Bank overdraft $0 $13,000 Accounts payable $ 39,000 $ 21,000 Income tax payable 3,000 2,000 Interest payable 5,000 6,000 Dividends payable 3,000 1,000 Bank loan payable--current portion 26,000 21,000 Bank loan payable-non-current portion 382,000 217.000 Common shares 196.000 89,000 Retained earnings 41,000 26,000 Total liabilities and shareholders' equity $695,000 $396,000 Additional information regarding 2021: 1. 2. 3. Net income was $52,000 A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $39,000 was recorded when an old building was sold for $57.000 cash. A new building was purchased for $367,000 and depreciation expense on buildings for the year was $60,000. Equipment costing $68,000 was purchased while a loss of $9,000 was recorded on equipment that was sold for $5.000. The equipment that was sold late in the year had accumulated depreciation of $11,000 4. 5. The company took out $205,000 of new bank loans during the year. 6. Dividends were declared and paid and no common shares were bought back by the company, (a) Prepare the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesis eg. (15,000).) CARLA VISTA LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to

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