The comparative, unclassified statement of financial position for Cullumber Ltd. shows the following balances at December 31: Cullumber Ltd. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 20,000 $35,000 Term deposits (maturing in 60 days) 0 41,000 Accounts receivable 75,000 37,000 Inventory 105,000 71,000 Land 179,000 227.000 904,000 525,000 Buildings Accumulated depreciation-buildings Equipment (138,000) (188,000) 95.000 69,000 (38,000) (19,000) Accumulated depreciation-equipment Total assets Liabilities and Shareholders' Equity $1,202,000 $798,000 Accounts payable $ 28,000 $72,000 Income tax payable 5,000 8,000 Liabilities and Shareholders' Equity $ 28,000 $72,000 5,000 8,000 22,000 14,000 Accounts payable Income tax payable Interest payable Bank loan payable-current portion Bank loan payable-non-current portion Common shares 55,000 42,000 898,000 420,000 156,000 181.000 Retained earnings 38,000 61,000 Total liabilities and shareholders' equity $1.202,000 $798,000 Additional information regarding 2018: 1. 2. 3. Net income was $10,000 A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $17,000 was recorded when old building was sold for was sold for $42,000 cash. A new building was purchased for $500,000 and depreciation expense on buildings for the year was $46,000. Equipment costing $72,000 was purchased while a loss of $13,000 was recorded on equipment that originally cost $46,000 and was sold for $21,000. The company received $516,000 from new bank loans during the year. Dividends were declared and paid during the year 5. 6. Additional information regarding 2018: 1. 2. 3. 4. Net income was $10,000 A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. Again on the disposal of $17,000 was recorded when old building was sold for was sold for $42,000 cash. A new building was purchased for $500,000 and depreciation expense on buildings for the year was $46,000. Equipment costing $72,000 was purchased while a loss of $13,000 was recorded on equipment that originally cost $46,000 and was sold for $21,000. The company received $516,000 from new bank loans during the year. Dividends were declared and paid during the year. No common shares were issued during the year but some were bought back and retired at the amount they were originally issued at 5 6. 7. (a) Prepare the statement of cash flows using the indirect approach. (Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesise.g. (15,000).) CULLUMBER LTD. Statement of Cash Flows-Indirect Method $ $ Adjustments to reconcile net income to > 4A A > A A A $ >