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 Buildings 904,000 525,000 Accumulated depreciation-buildings (138,000) (188,000) Equipment 95,000 69,000 Accumulated depreciation equipment (38,000) (19,000) Total assets $1,202,000 $798,000 Liabilities and Shareholders' Equity Accounts payable $ 28,000 $ 72,000 Income tax payable 5,000 8.000 Interest payable 22,000 14,000 Bank loan payable-current portion 55,000 42,000 Bank loan payable-non-current portion 898,000 420,000 Common shares 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. Net income was $10,000. 2. A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 3. 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. 4. 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. 5. The company received $516,000 from new bank loans during the year. 6. Dividends were declared and paid during the year. 7. No common shares were issued during the year but some were bought back and retired at the amount they were originally issued at. (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 parenthesis e.g. (15,000).) CULLUMBER LTD. Statement of Cash Flows-Indirect Method December 31, 2018 Cash flows from operating activities Net income $ 10,000 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense $ Gain on disposal of building (17,000) Increase in accounts receivable (38,000) Loss on disposal of land 21,000 Loss on disposal of equipment 13,000 Decrease in accounts payable (44,000) Increase in inventory (34,000) Decrease in income tax payable (3,000) Increase in interest payable 8,000 Cash flows from investing activities Cash flows from investing activities Purchase of equipment (72,000) Purchase of building (500,000) Gain on disposal of equipment 21,000 Gain on disposal of building (42,000) Gain on disposal of land Cash flows from investing activities Cash flows from financing activities Repurchase of common shares $ (25,000) Dividends paid Cash and cash equivalents, December 31 $